The Fed’s cut was ‘more hawkish than anticipated,’ Moody’s Zandi says — and warns it won’t be enough to stave off a looming jobs recession

FortuneFriday, September 19, 2025 at 10:05:00 AM
The Fed’s cut was ‘more hawkish than anticipated,’ Moody’s Zandi says — and warns it won’t be enough to stave off a looming jobs recession
Moody's chief economist Mark Zandi has described the Federal Reserve's recent interest rate cut as 'more hawkish than anticipated,' suggesting that it may not be sufficient to prevent an impending jobs recession. This is significant because it indicates that despite the Fed's efforts to stimulate the economy, the market's reaction shows a lack of confidence in the recovery, raising concerns about future employment rates.
— Curated by the World Pulse Now AI Editorial System

Was this article worth reading? Share it

Recommended Readings
Natera executive chairman sells $9 million in stock
NegativeFinancial Markets
In a significant move, the executive chairman of Natera has sold $9 million worth of stock, raising concerns among investors about the company's future. Such large sales can often signal a lack of confidence in the company's performance, potentially impacting stock prices and investor sentiment. This development is crucial as it may influence market perceptions and the company's financial stability.
Wall Street Bets Rates Will Drop Much More Than the Fed’s Forecasts
PositiveFinancial Markets
Investors are feeling optimistic as futures markets indicate that interest rates could drop below 3% by the end of next year, a significant shift from the Federal Reserve's forecasts. This potential decrease in rates could lead to more accessible borrowing and stimulate economic growth, making it an important development for both consumers and businesses.
DarioHealth amends preferred stock terms to accelerate conversions
PositiveFinancial Markets
DarioHealth has made significant changes to the terms of its preferred stock, aiming to accelerate conversions for investors. This move is seen as a strategic effort to enhance liquidity and attract more investment, which could positively impact the company's growth trajectory. By simplifying the conversion process, DarioHealth is positioning itself favorably in the competitive market, making it an exciting time for both the company and its stakeholders.
American Battery Technology files $50 million at-the-market stock offering plan
PositiveFinancial Markets
American Battery Technology has announced a $50 million at-the-market stock offering plan, which is a significant move for the company as it seeks to bolster its financial position and support its growth initiatives. This offering allows the company to raise capital more flexibly, tapping into the market as needed. This is important because it demonstrates investor confidence in the company's future and its role in the evolving battery technology sector.
Fed’s Miran defends call for steep rate cuts, says Trump didn’t direct his vote
NeutralFinancial Markets
Federal Reserve official Miran has defended his recent call for significant interest rate cuts, clarifying that his decision was not influenced by former President Trump. This statement is important as it highlights the independence of the Fed in its monetary policy decisions, especially in a politically charged environment. Understanding the Fed's stance on interest rates can help investors and the public gauge future economic conditions.
Poland’s Rating Outlook Cut by Moody’s as Budget Risks Increase
NegativeFinancial Markets
Moody's Ratings has indicated a potential downgrade of Poland's credit score due to rising budget risks amid ongoing political tensions. This is significant as a lower credit rating could lead to higher borrowing costs for the country, impacting its economic stability and growth prospects.
Fed Faces 'Unprecedented' Inflation vs. Jobs Dilemma, Larry Summers Says
NeutralFinancial Markets
Former Treasury Secretary Lawrence H. Summers has highlighted the unique challenges the Federal Reserve faces today, particularly the balancing act between controlling inflation and maintaining employment levels. He suggests that the current economic climate is unprecedented, with recent rate cuts potentially increasing the risk of inflation over unemployment. This discussion is crucial as it reflects the complexities of monetary policy in a rapidly changing economic landscape.
Dollar extends post-Fed rebound; sterling hit by fiscal worries
NeutralFinancial Markets
The dollar has continued its rebound following the Federal Reserve's recent decisions, reflecting a stronger position in the currency market. Meanwhile, the British pound is facing challenges due to concerns over fiscal policies, which could impact the UK's economic stability. This situation is significant as it highlights the ongoing fluctuations in global currencies and the potential implications for international trade and investment.
Canada stocks higher at close of trade; S&P/TSX Composite up 1.07%
PositiveFinancial Markets
Canada's stock market closed on a high note, with the S&P/TSX Composite rising by 1.07%. This positive trend reflects investor confidence and could signal a robust economic outlook for the country. Such gains in the stock market are significant as they often lead to increased investment and spending, which can further stimulate economic growth.
Brazil stocks higher at close of trade; Bovespa up 0.25%
PositiveFinancial Markets
Brazil's stock market closed on a positive note, with the Bovespa index rising by 0.25%. This uptick reflects growing investor confidence and could signal a strengthening economy, making it an important development for both local and international investors.
Rent the Runway stock falls amid recapitalization concerns
NegativeFinancial Markets
Rent the Runway's stock has taken a hit as concerns about its recapitalization efforts grow. This decline is significant for investors who are closely monitoring the company's financial health and future prospects. The situation highlights the challenges faced by the fashion rental service in a competitive market, making it crucial for stakeholders to stay informed about potential impacts on their investments.
Oil prices slip as robust supply outweighs Fed cut
NegativeFinancial Markets
Oil prices have dipped as strong supply levels overshadow the recent interest rate cut by the Federal Reserve. This decline is significant as it reflects the ongoing balance between supply and demand in the market, which could impact consumers and businesses alike. Lower oil prices might ease inflationary pressures, but they also indicate potential challenges for oil-producing nations.
Latest from Financial Markets
Michael Froman on the New ‘Polyamorous’ Global Trading System
PositiveFinancial Markets
Michael Froman discusses the evolving landscape of global trade, highlighting a new 'polyamorous' approach that embraces multiple partnerships and collaborations. This shift is significant as it reflects the complexities of modern economies and the need for nations to adapt to changing dynamics. By fostering diverse trade relationships, countries can enhance their economic resilience and create more opportunities for growth.
Australia’s Optus vows to cooperate with probes amid outrage over emergency call services outage
NegativeFinancial Markets
Australia's Optus is facing significant backlash following a major outage of its emergency call services, prompting the company to pledge cooperation with ongoing investigations. This incident raises serious concerns about the reliability of telecommunications during critical situations, highlighting the importance of robust infrastructure and accountability in the sector.
EV maker Polestar recalls over 27,000 US vehicles due to rearview camera issue, NHTSA says
NegativeFinancial Markets
Polestar, the electric vehicle manufacturer, has announced a recall of over 27,000 vehicles in the US due to a rearview camera issue, as reported by the National Highway Traffic Safety Administration (NHTSA). This recall is significant as it highlights ongoing safety concerns in the EV industry, emphasizing the importance of reliable safety features in vehicles. Consumers need to be aware of such recalls to ensure their safety on the road.
AI-picked stocks now up 150%+; an 111% outperformance vs. the S&P 500
PositiveFinancial Markets
AI-selected stocks have surged over 150%, significantly outperforming the S&P 500 by 111%. This remarkable performance highlights the growing influence of artificial intelligence in investment strategies, showcasing its potential to identify lucrative opportunities in the market. As investors increasingly turn to AI for guidance, this trend could reshape how portfolios are managed and lead to more informed decision-making.
Is Kering’s rebound just another yo-yo trade? Bernstein weighs in
NeutralFinancial Markets
Kering's recent performance has sparked discussions about whether its rebound is sustainable or just a temporary fluctuation. Bernstein analysts have weighed in, suggesting that while there are positive indicators, investors should remain cautious. This matters because Kering is a major player in the luxury goods market, and its stock movements can influence broader market trends.
ECB Needs December Cut to Safely Reach 2% Inflation, Simkus Says
PositiveFinancial Markets
Governing Council member Gediminas Simkus has emphasized the importance of the European Central Bank lowering interest rates in December to maintain a healthy balance between inflation and economic growth. This move could help ensure that inflation remains around the target of 2%, which is crucial for economic stability in the Eurozone.