Whose Hands Will The Fed's Power Fall Into? The Fed Will Release Meeting Minutes Worth Paying Attention To【The week ahead】

Source Tradingkey

TradingKey - Last week, U.S. stocks continued to rally, with both the Dow Jones Industrial Average and the S&P 500 reaching new highs. As of Friday's close, the Dow has cumulatively gained 14.49% year-to-date, the S&P 500 index has risen 17.82%, and the Nasdaq Composite has advanced 22.18%. This week, the minutes from the Federal Reserve's most recent policy meeting will be a key market focus. Furthermore, investors are awaiting whether U.S. President Trump will nominate the next Federal Reserve Chair this week.

Key Events Preview

Fed to Release Meeting Minutes; More Monetary Policy Signals Expected

The minutes from the Federal Reserve's latest policy meeting will be the market's focus for the final week of the year. Looking ahead to the new year, investors are highly attentive to the timeline for potential further Fed interest rate cuts.

During its December 9-10 meeting, the Federal Reserve saw divergent opinions on the decision for another 25-basis-point rate cut, and officials' forecasts for next year's interest rate trajectory varied significantly. The minutes from this meeting will be released on Tuesday. Michael Reynolds, Vice President of Investment Strategy at Glenmede, stated that these minutes "might offer the market a clearer understanding of the various arguments at the table during that meeting."

Who Will Succeed Powell?

Trump may name his pick for the new Federal Reserve Chair in the first week of January. Top contenders to succeed Powell include White House economic advisor Kevin Hassett, former Fed Governor Kevin Warsh, Fed Governor Christopher Waller, and Fed Governor Michelle Bowman.

Although the Federal Reserve has cut interest rates three consecutive times since September this year, lowering the federal funds rate target range by 25 basis points to between 3.5% and 3.75% on the 10th of this month, U.S. President Trump desires a federal funds rate of '1% or even lower' and wants the 'disobedient' incumbent Fed Chair Powell to leave quickly. Trump has previously stated that he would soon announce his nominee for the next Federal Reserve Chair.

Buffett Officially 'Retires,' Steps Down as Berkshire CEO, Abel to Take Over

Warren Buffett, 95, will step down as CEO of Berkshire Hathaway at year-end. Over the past 60 years, he leveraged this company to generate astounding wealth for himself and its shareholders. Under his leadership, Berkshire Hathaway achieved cumulative returns of 55,022 times and an annualized return of 19.9% from 1965 to 2024, significantly outperforming the S&P 500's cumulative return of 390 times and an annualized return of 10.4% during the same period.

Berkshire Vice Chairman Greg Abel will assume the role from January 1, 2026. However, he will continue to serve as the company's Chairman of the Board and temporarily retain a 'substantial amount' of shares.

New Year's Day Holiday: U.S. Stocks, Hong Kong Stocks, and Other Global Markets Closed

The Hong Kong stock market will have a half-day session on December 31, 2025 (Wednesday), with trading hours from 09:00 to 12:00. It will be closed for the entire day on January 1, 2026 (Thursday). Northbound trading services for Shanghai-Shenzhen-Hong Kong Stock Connect will align with Hong Kong trading days, pausing when Hong Kong stocks are closed.

The U.S. stock market will trade normally on December 31, 2025 (Wednesday), with trading hours from 09:30 to 16:00 EST. It will be closed on January 1, 2026 (Thursday). Additionally, the South Korean, Japanese, Singaporean, and Malaysian stock markets will be closed on January 1. The Japanese stock market will also be closed on January 2.

Selected Economic Data

Monday: U.S. November Pending Home Sales Index MoM

Tuesday: U.S. December Chicago PMI

Wednesday: U.S. Initial Jobless Claims for the Week Ending December 27

Selected Events This Week

Monday: U.S. President Trump delivers a speech.

Wednesday: Federal Reserve releases monetary policy meeting minutes.

Friday: U.S. December S&P Global Manufacturing PMI Final Reading

Holidays

Wednesday: New Year's Day Holiday

Thursday: New Year's Day Holiday

Friday: New Year's Day Holiday

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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