Stocks look to trade on the downside at the open of today’s markets. Early this week, stocks, notwithstanding some volatility, essentially traded flat leading up to the conclusion of the Federal Reserve’s September 19-20 meeting. Share prices weakened Wednesday afternoon, however, when Fed Chair Jerome Powell spoke at a press conference. As was widely anticipated on Wall Street, the central bank decided to hold the federal funds rate at 5.25%-5.50%. Mr. Powell noted, however, that gross domestic product growth has been stronger than expected and that the jobs market has proved quite resilient in the face of higher short-term rates. He reiterated the Fed’s ambition to bring the inflation rate closer to its target of 2%. Another hike in the fed funds rate, probably on the order of 25 basis points, before the end of 2023 has not been ruled out. Most visibly, investors focused on the Chair’s guidance that a more-modest total cut in short-term rates, of 50 basis points, instead of one full percentage point, is likely in 2024. As well, he noted that quantitative tightening (i.e., much less than complete replacement of maturing bonds on the Fed’s balance sheet) will continue unabated. Chairman Powell also repeated his prior statement that Fed’s interest rate policy will be guided by incoming economic data.