Federal Reserve Chair Jerome Powell's recent comments have significantly influenced financial markets, leading to a reassessment of expectations for future interest rate cuts. Powell indicated that the Fed would likely approach rate cuts cautiously due to persistent inflation pressures. His remarks dampened investors' hopes for another rate cut in 2024, causing Wall Street's main indexes to close lower. The U.S. dollar strengthened, eyeing a weekly gain, as traders adjusted their bets on the pace of monetary easing. Powell's hawkish tone, emphasizing the lack of urgency in lowering rates, led to a decline in U.S. equities, with the S&P 500 and Nasdaq experiencing their biggest one-day losses in two weeks. This shift in market sentiment was also influenced by concerns over Donald Trump's cabinet picks. Despite the recent rate cut, the probability of another cut in December has dwindled, with market-implied odds now suggesting a coin flip at 61%. SPI Futures rose by 52 points, while Bitcoin tested levels below $87,000. Dow futures pointed to further losses, and U.S. index futures were set to gap lower. Traders also pared their bets on rate cuts in 2025, and the Nasdaq was down 2.7% for the week.