Jerome Powell Affirms He Will Not Resign under Trump Pressure
- The U.S. stock market hit record highs following a Federal Reserve interest rate cut.
- Fed Chair Jerome Powell reassured the market about his position amid speculation about his resignation.
- The combined market cap of major tech companies rose to over $17 trillion, signifying robust market confidence.
On November 7, 2024, the U.S. stock market reached record highs following the Federal Reserve's decision to lower interest rates. The Federal Reserve cut interest rates by 0.25% to a range of 4.5%-4.75%, reflecting robust economic growth, including a 2.8% GDP increase in the second quarter. Fed Chair Jerome Powell addressed market concerns during a press conference, emphasizing that weak employment data resulted from temporary factors and not from fundamental economic weaknesses. During the press conference, Powell downplayed speculation regarding his resignation after the election of Donald Trump. He stated firmly that the president does not have the authority to remove the Fed chair, which restored confidence among investors and led to increased market expectations for future rate cuts. The combined market capitalization of tech giants known as the Magnificent Seven exceeded $17 trillion, showcasing the strength of the technology sector following the Fed's announcement. As market confidence surged, the Nasdaq 100 achieved an all-time high of 21,100 points, outperforming the broader market. The S&P 500 rose by 0.7%, while Treasury yields fell sharply as investors adjusted expectations for future monetary policy. However, financial stocks showed weakness, marking a stark contrast to the tech sector's gains. The economic backdrop highlights the recovering momentum in consumer confidence and employment, suggesting that further adjustments in monetary policy might be on the horizon as the Federal Reserve monitors economic data closely.