Watch Fed Chair Jerome Powell speak live on economy, policy views

Published On Sep 30, 2024, 1:42 PM

Federal Reserve Chair Jerome Powell spoke at the National Association for Business Economists annual conference, providing insights on the current state of the economy and the Fed's policies. He highlighted that the Fed recently approved a half-percentage-point reduction in its key overnight borrowing rate—the first cut in over four years. Markets anticipate further rate reductions as new economic data becomes available.

Stock Forecasts

Given the potential for further rate cuts and the current economic landscape, sectors such as technology and consumer discretionary may see improved investor sentiment and stock performance. Lower interest rates generally benefit these sectors, as borrowing costs decrease and consumer spending can rise.

Conversely, banks and financial institutions may face pressure on their profit margins with continued rate cuts. Lower interest rates could reduce their lending profitability, leading to potential declines in stock prices within the financial sector.

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