This will be a historical week for the market…
On Wednesday, the Federal Reserve is set to lower interest rates for the first time in more than four years.
Between 2022 and 2023, the central bank raised rates at one of the fastest paces we’ve seen in an attempt to stave off inflation. Now that inflation readings are getting closer to its target level, it’s time to make a move.
At this point, there’s really no question that the Fed will lower interest rates on Wednesday. But a week ago, the odds were just 30% chance that it would be aggressive with a 50-basis-point (0.50%) cut.
Now, there’s a 50-50 chance that the cut will be 25 (0.25%) or 50 basis points.
The market is clearly split on how much the Fed will and should cut interest rates this week. And that could lead to some disappointed investors.
As a result, I expect we’ll see more volatility in the short term – to both the upside and downside. But the more important question is what the start of a rate-cut cycle means for stocks in the long term.
I answer that question and dive into some historical numbers in today’s video update.
Here’s to the future,
Matt McCallEditor, Market Insights
The post What Will Stocks Do After the Fed’s Rate Cut? appeared first on Centurion Publishing.
