3 articles
Major U.S. equity indices surged November 11, 2025, with the S&P 500 gaining over 2% after Fed official Mary Daly indicated tariff effects remain limited to goods prices while wage growth moderates. The rally gained momentum as White House backing for a bipartisan shutdown deal removed political uncertainty. Technology and AI semiconductor stocks led gains.
The Federal Reserve is shifting toward a prolonged pause in rate cuts, with market expectations now pricing just a 51% probability of a single cut by June 2026. Chair Powell emphasized the Fed's focus on preventing tariff-driven inflation from becoming entrenched, while officials signal rates are near neutral levels.
Federal Reserve officials are signaling an extended pause on rate cuts, pointing to resilient headline growth driven largely by surging AI investment. But beneath the surface, inflation has remained stuck near 3% for close to four years, lower-income households are under severe affordability pressure, and traditional sectors are stagnating—raising hard questions about whether monetary policy is calibrated for the economy most Americans actually live in.