Here’s What to Watch as the Fed Meets Thursday
Published On Nov 7, 2024, 5:03 AM
Federal Reserve officials are expected to implement a quarter-point interest rate cut in response to slowing inflation. Although there's been a stabilization in the job market and strong consumer spending, the potential return of Donald Trump to the presidency introduces uncertainty regarding future inflation and economic policies. If Trump's policies, which may involve tax cuts and tariffs, are enacted, this could complicate the Fed's ability to continue lowering rates effectively.
Stock Forecasts
XLF
Positive
With the anticipated interest rate cut from the Fed, sectors sensitive to interest rates like Real Estate and Utilities may see increased investments as lower borrowing costs typically support these industries. However, if inflation concerns rise due to Trump's proposed policies, this could negatively impact growth stocks sensitive to interest rate hikes.
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