UBS On-Air: Market Moves UBS On-Air: Paul Donovan Daily Audio 'The exciting tale of the Federal Reserve'
17 snips
Nov 20, 2025 Recent minutes from the Federal Reserve revealed surprising opposition to a December rate cut, causing a stir in the markets. The ongoing government shutdown is projected to limit new economic data, creating uncertainty ahead of the Fed meeting. There's also concern over distorted employment reports, with losses in October data collection. Amidst political pressures, including critique from President Trump, the outlook on payrolls and earnings remains steady. Additionally, German producer prices show signs of weakness, highlighting broader market trends.
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Fed Minutes Curb December Cut Expectations
- Many Fed officials opposed a December rate cut according to the minutes.
- The shutdown means little new data will arrive to shift the Fed's consensus before December.
Shutdown Removes Near-Term Labor Signals
- Some employment data will be unavailable because of the US government shutdown.
- That reduces the scope for the Fed consensus to shift before its December meeting.
Trump's Public Jab At Fed Policy
- President Trump criticized the Fed's reluctance to cut rates and joked about firing the Treasury Secretary.
- That comment was widely treated as a joke despite its sharpness.