Fed Cuts Interest Rates for First Time in Four Years: Live Updates

Published On Sep 18, 2024, 11:56 AM

The Federal Reserve has announced a significant half percentage point cut in interest rates, reducing them from a high point of over 5%. This decision reflects the Fed's confidence that inflation is declining, which allows for a more aggressive approach to maintain job market stability. The Fed aims to support the economy without creating excessive unemployment, indicating a potential for more rate cuts in the upcoming meetings. Officials project rates to fall further, with expectations of reaching 4.4% by the end of the year and potentially 3.4% by the end of 2025.

Read full article

Stock Forecasts

SPYView SPY chart on TradingView

Positive

The Fed's rate cut signals a supportive approach to economic growth and should benefit sectors sensitive to interest rates and consumer spending.

XHBView XHB chart on TradingView

Positive

Real estate and mortgage-related stocks may also benefit from lower rates, as borrowing becomes cheaper, stimulating the housing market.

XLFView XLF chart on TradingView

Negative

Financial institutions may face margin pressures from lower rates, which could impact their profitability.

Related News

Inflation is not ‘dead at all’ despite ‘coming down’: Hoenig | Fox Business Video

Capitalist Pig hedge fund manager Jonathan Hoenig weighs in on market rallies, his concern for everyday Americans amid inflation, and his stock pick.

SPY

Jamie Dimon warns of 'critical issues' that could affect US economy

Oct 11, 2024, 12:25 PM

JPMorgan Chase & Co. chief Jamie Dimon on Friday sounded the alarm about "critical risks" to the U.S. economy in the bank's third quarter earnings report.

SPY

A Trump Fix for the Housing Crisis Could Actually Make It Worse

Oct 11, 2024, 12:01 PM

The former president often implies that deportations will bring down housing costs. Reality is more complicated.

DRN
XHB