WS #15173
Governor Lisa Cook’s speech emphasized that inflation remains stubbornly high, signaling that the Fed is not yet ready to pivot to rate cuts. This hawkish stance contradicts polymarket odds that price in a 25bps cut for the October meeting. The message reinforces the 'higher for longer' rate environment, which is bearish for high-multiple growth stocks and REITs, while providing a tailwind for financials and the US dollar.
Federal Reserve Hawkish Stance
Governor Lisa Cook’s speech emphasized that inflation remains stubbornly high, signaling that the Fed is not yet ready to pivot to rate cuts. This hawkish stance contradicts polymarket odds that price in a 25bps cut for the October meeting. The message reinforces the 'higher for longer' rate environment, which is bearish for high-multiple growth stocks and REITs, while providing a tailwind for financials and the US dollar.