Federal Reserve Chair Jerome Powell announced that the U.S. economy's strength does not indicate a need to rapidly lower interest rates, despite Wall Street's anticipation of more aggressive rate cuts. Powell emphasized that inflation is nearing the Fed's 2% target but has not fully achieved it, allowing for a cautious approach to rate adjustments. The S&P 500 dropped, and Treasury yields rose following Powell's remarks, reflecting traders' disappointment. Additionally, President-elect Donald Trump's proposed economic policies, including potential tax cuts and tariffs, add uncertainty to future monetary policy decisions. Automaker stocks fell after reports of Trump's intention to repeal a tax credit for electric vehicles, a key component of President Biden's green transition agenda. As the economy continues to perform well, Powell remains confident in the Fed's careful strategy to maintain economic and labor market strength while gradually controlling inflation.