What I Expect After The Fed Cuts Rates In 2024

panida wijitpanya Written by Sam Kovacs Have you ever wondered what actually happens when the Fed cuts rates? While stock market pundits, myself included, have been tirelessly speculating on the pivotal moment of the rate cycle, how much have we truly examined the aftermath? In this article, I’ll look into the historical patterns of stock…

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Fed Policy: One Month Of Good Data Is Not Enough

LD One softer-than-expected monthly inflation reading didn’t stop Federal Reserve officials from delaying the expected start of interest rate cuts. On the same day that core consumer price index (CPI) inflation registered its softest monthly reading in almost three years, the Fed adjusted higher its estimate for where its policy rate would land at year-end….

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Fed Watch: At The Midway Point

Dilok Klaisataporn By Kevin Flanagan Once again, the Fed kept rates unchanged at the June FOMC meeting. As a result, the Fed Funds trading range remains in the 5.25%-5.50% band that was introduced in July last year, and still resides at a more than 20-year high-water mark. For those keeping track, this represents the seventh…

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ECB Vs. Fed Policy: Divergent, But Not For Too Long

Richard Drury By Seema Shah, Chief Global Strategist The European Central Bank’s 25 basis point rate cut, ahead of the Federal Reserve, underscores the differing post-COVID economic recoveries between the Euro area and the U.S. With Euro area growth lagging and inflation down from its peak, the ECB’s proactive stance is warranted. However, this divergence…

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Where Fed Is Likely To Go And What That Means For Equities

Funtap/iStock via Getty Images Listen below or on the go on Apple Podcasts and Spotify Michael Kramer discusses market divergences, interest rates and inflation (0:30). How many rate cuts will we see this year? (6:20) Bleak 2024 earnings picture (11:20). This is an abridged conversation from a recent Investing Experts podcast. Transcript Rena Sherbill: Michael…

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PTY Looks A Lot More Interesting After The Last Fed Meeting

PM Images Intention is an interesting concept when it comes to investing. There are some who criticize different investments without considering the intention behind that investment. When an individual allocates capital toward an investment, they do so with a specific goal in mind, and it’s not always to generate capital appreciation. Unless you’re betting against…

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Quick Thoughts: Fed Hawks Will Fly Lower – Eventually

LD By Stephen H. Dover, CFA, Chief Market Strategist, Head of Franklin Templeton Institute | Rick Polsinello, CIMA, Senior Market Strategist, Franklin Templeton Institute Originally published in Stephen Dover’s LinkedIn Newsletter, Global Market Perspectives. As was widely expected, the Federal Reserve (Fed) decided to again leave the Fed funds rate unchanged at the Federal Open…

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Fed Watch: Push It Back, Push It Back, Way Back

LD By Kevin Flanagan Once again, the Fed kept rates unchanged at the May FOMC meeting. As a result, the Fed Funds trading range remains in the 5.25-5.50% band introduced in July 2023 and still resides at a more than 20-year high-water mark. For those keeping track, this represents the sixth consecutive FOMC meeting in…

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Wall Street Brunch: Fed, Payrolls, Apple, Amazon

RiverNorthPhotography Listen below or on the go on Apple Podcasts and Spotify Traders will be looking for any hints to the timing of rate cuts. (0:17) Apple and Amazon lead the earnings parade. (2:06) Elon Musk makes surprise visit to China. (4:12) The following is an abridge transcript: It’s a big week on the economic…

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Federal Reserve Watch: Can The Fed Keep Things Calm?

Douglas Rissing Let’s build the story of the monetary tightening by the Federal Reserve in this way. Since March 16, 2022, the Federal Reserve has overseen a reduction in its securities’ portfolio of $1,561 billion. Since March 16, 2022, the Federal Reserve has overseen a reduction in the use of reverse repurchase agreements of $1,069…

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U.S. Inflation Quashes The Chances Of A June Fed Rate Cut

Eoneren By James Knightley, Chief International Economist US inflation remains too hot for comfort US core consumer price inflation came in at 0.4% month-on-month, above the 0.3% consensus – only one forecaster predicted such an outcome, so just like last Friday’s jobs report, this is another significant upside surprise that should quash expectations of a…

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Odds Are The Fed Won’t Cut Rates In 2024

Win McNamee It seems pretty clear that Jay Powell is not rushing to cut rates. He has spoken twice since the February PCE report, and both times, he has emphasized patience regarding the Fed’s next steps. He has also, to some degree, played down the elevated January and February inflation reports. While the Fed is…

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PCE February 2024: Personal Spending Too Hot For Fed Rate Cuts

pcess609/iStock via Getty Images The Bureau of Economic Analysis (BEA), has just released its estimate for February 2024 US Personal Consumption Expenditures (PCE). Also known as “Personal Spending,” PCE directly accounts for over 60% of total US Gross Domestic Product (GDP), marking it a crucial indicator for assessing changing rates of expansion, contraction, and momentum…

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Is The ‘Fed Put’ Back On The Table?

wildpixel/iStock via Getty Images We witnessed another momentous week as the Federal Reserve’s tone on markets was more dovish than anticipated. Jay Powell said that the Fed still expects three rate cuts this year, which helps enable a highly constructive backdrop for stocks and other risk assets. Moreover, with the Fed in QT wind-down mode,…

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Wall Street Brunch: Fed Speakers In Focus

AdamParent Listen below or on the go on Apple Podcasts and Spotify FOMC members may look to temper market enthusiasm. (0:20) GameStop, Walgreens set to report earnings. (2:26) Goldman sees path to S&P 6,000. (4:38) The following is an abridged transcript: The top stories to look out for The Fed took the headlines this past…

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The Happiest Fed Ever | Seeking Alpha

yalcinsonat1 No, Jay Powell did not do a happy dance at the post-FOMC press conference, but the Fed chair was feeling good on Wednesday and it showed. And why not? The big takeaway from the much-anticipated “dot plot” – the Summary Economic Projections representing Committee members’ best guesses about the economy and interest rates –…

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Quick Thoughts: The Fed – Steady As She Goes

yalcinsonat1 By Stephen H. Dover, CFA, Chief Market Strategist, Head of Franklin Templeton Institute | Rick Polsinello, CIMA, Senior Market Strategist, Franklin Templeton Institute Originally published in Stephen Dover’s LinkedIn Newsletter Global Market Perspectives. As was widely expected, the Federal Reserve (Fed) decided to leave the Fed funds rate unchanged at its March 20 Federal…

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Q&A: Fed Rate Cut Edition

Dilok Klaisataporn There are a lot of questions about Fed policy these days and where things might be headed. Here are some commonly asked questions I’ve been getting lately: 1) Why is the Fed considering a rate cut? At Wednesday’s FOMC meeting the Fed stood by their estimate of 3 rate cuts in 2024. This…

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The Fed Is Signaling That It Really Wants To Cut Rates

niphon By Seema Shah, Chief Global Strategist To no-one’s surprise, the Federal Open Market Committee (FOMC) chose to keep the benchmark policy rate at 5.25%-5.50% on March 20th. More significantly, the latest dot plot revealed the committee continues to expect 75 basis points of cuts this year. That is despite recent upside inflation surprises as…

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Fed Meeting Preview – No Drama, No Meaningful Changes

yalcinsonat1 Stocks closed higher ahead of the Fed’s meeting this week, as tech behemoths Apple and Google rebounded on news that the iPhone maker will build Google’s Gemini artificial intelligence engine into its phones. Still, nine of the eleven S&P 500 sectors finished modestly in the green, while small caps struggled, which is likely due…

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The Fed Could Trigger A Correction

ronniechua Despite increased volatility and rolling corrections, the S&P 500/SPX (SP500) continues trading near its ATH. The SPX recently nailed a top of around 5,200, which is impressive considering the upside of approximately 27% since the October 2023 correction bottom, which occurred only about four months ago. If we disregard the 2023 correction, the SPX…

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The Fed Is At Risk Of Making A Big Mistake

Chip Somodevilla On the first day of Powell’s testimony, not much happened, and he failed to take control. There was very little that was new. This comes despite continued signs of inflation reaccelerating and robust economic data. If the Fed is correct in its assessment that inflation will return to target, the unemployment rate will…

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