Fed Holds, December Hike Looms — Macro Backdrop for Risk Assets
The Fed is expected to hold rates this week with markets pricing a December hike; China injected $19B into its stock market; and Goldman Sachs sees 60%+ upside in Korean equities after a 40% crash.
What we know
An account on X reported the Fed is expected to hold rates, with Chair Kevin Warsh facing the challenge of explaining the pause despite persistent tariff-driven inflation — a December hike is the base case. Meanwhile, another account on X highlighted China injecting ¥129B ($19B) into its equity market, calling it proof that central banks always remove left-tail risk. Goldman Sachs cut its KOSPI 12-month target to 9,000 from 12,000 but still sees 60%+ upside after the index crashed 40% from June highs to a 4x forward P/E.
How the story developed
The Fed is expected to hold rates this week with markets pricing a December hike; China injected $19B into its stock market; and Goldman Sachs sees 60%+ upside in Korean equities after a 40% crash.
The Fed held despite hot CPI as Goldman warns tail risks are widening; early market rotation signals are forming; the short silver trade is becoming dangerously crowded per options skew.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.