Watch Fed To Signal Pause In Rate Hikes

By Bryan Rich

November 12, 5:00 pm EST

Stocks continue to swing around following last weeks midterm elections.  Perhaps it has something to do with the uncertain outcome that remains in Florida, given the role Florida will play in the 2020 Presidential election.  Perhaps it has something to do with the continuation of the unraveling of the tech giants.

Maybe more importantly, we head into a week with key inflation data hitting for the U.S., Europe and the UK.  And we have Q3 GDP numbers coming from Japan and Europe.  The Japanese economy is expected to have contracted last quarter.

Slowing numbers in Japan and Europe, along with some tame inflation data might give the Fed Chair (Powell) an excuse to dial down expectations of a December Fed hike.  He is scheduled to speak Wednesday afternoon at a Dallas Fed event.

With the idea that the new divided Congress will put the brakes on any new pro-growth economic policies, Powell may be looking for the excuse to slow the pace that rates are rising.  That would be a huge catalyst for stocks.

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