Jennifer Lee: Tech Selloff Easing Pressure on Federal Reserve

Jennifer Lee advised on the policy direction of the Federal Reserve, stating that a technology stock selloff is bringing interest rates lower and easing pressure on the Federal Reserve to act. She noted that while the US economy was strong across the third quarter, it finished on a weak footing, particularly in household spending. Lee also observed that growth in wages and salaries was slowing.

Lee suggested the technology pullback could temper demand for resources used to build artificial intelligence data centers, which may help efforts to bring inflation down. She predicted the Federal Reserve would likely favor tighter policy in its post-meeting press conference and expected the central bank to tighten policy again in December.