Log in to today’s North American session Market wrap for December 12
When you thought things were going to be straightforward at least until NFP, you were wrong.
Fed speak can have immense effects after Rate Decisions, as seen with today’s action.
Austan Goolsbee and Jeffrey Schmid, the two dissenters from Wednesday’s decision, expressed their views today, and it seems that markets may have caught somewhat of a cold.
Their remarks—highlighting that inflation remains too high while the labor market flashes no immediate warning signs—provide a fair argument against rushing into further cuts, at least until the situation deteriorates or clarity improves.
This echoes Chair Powell’s own comments during his speech, where he noted the Fed was “driving blind” due to data delays and suggested that rates are now entering “the high end of the neutral range.”
When markets perceive barriers to the 2026 cutting cycle, the outlook for risk assets inevitably darkens.
Since the end of the morning session, markets across asset classes have bled, sapping the good mood from the post-cut rally.
The Dow Jones, which marked fresh all-time highs at the open, is now retesting its preceding highs—so there is still hope for a push higher if support holds.
Everything will now depend on next week, the final week of true action before year-end trading slows to a crawl.
Before we move to the key performance charts of the session, Trump made a very recent remark on his new favorite participant to replace Powell in May 2026.
Kevin Warsh, an ex-Fed Governor, could be a more reassuring alternative for the title as Wall Street expressed their discontent about the other Kevin (Hassett).