Andy Wang’s Post

The Federal Reserve just cut interest rates by 0.25%, marking their third cut this year, and brought rates down to a range of 4.25% to 4.5%.

Fed Update: What You Need to Know 🚨 🚨. The Fed just cut interest rates by 0.25%, the third time this year, and lowered rates to 4.25% to 4.5%. But here's the kicker: The Fed said it would cut rates just twice in 2025, down from the four cuts it projected in September. What does this mean for you?  * The economy remains resilient, with GDP growth and corporate earnings expected to remain strong through 2025.  * Borrowing costs, especially for mortgages and business loans, may not come down as quickly as expected.  * Now is a great time to review portfolios and focus on sectors that have performed well in a stable or slightly tighter monetary environment. The Fed's cautious approach signals a delicate balance: controlling inflation while supporting economic growth. What are your thoughts on the Fed, inflation and the stock market in 2025? Follow me for more updates and financial tips. Topic Tags #FinancialAdvisor Topic Tags #Fed Topic Tags #LITrendingTopics Topic Tags #Investing Topic Tags #Inflation

The path of interest rates has been highly uncertain over the past few years due to inflation, economic growth, and the Fed. The 10-year U.S. Treasury yield, for instance, jumped from 3.8% at the end of last year to a high of 4.7% in April, before settling around 4.2% more recently. Higher rates have defied the expectations of investors and economists, creating a challenging environment for the bond market, since rising rates push down bond prices. However, with inflation beginning to improve, many finally expect the Fed to begin cutting rates by the end of the year. What perspective do diversified investors need to stay balanced in the months ahead? Read this full post and previous posts at https://lnkd.in/gFcWpX6E

A bit of contrarian fact. The Fed lowered rates by 1/2%, yet the 10-year treasury notes have been rising every day. This counterintuitive trend challenges the expectation of declining rates. This divergence may not bode well for a stable economy. 🔁 Higher bond yields indicate a belief that borrowing costs will remain higher, and a belief in big Fed rate cuts point to a likely decline in borrowing costs. Something is very wrong. #treasury #interest #Fed #rates

𝗨.𝗦. 𝗚𝗗𝗣 𝗚𝗿𝗼𝘄𝘁𝗵 & 𝗜𝗻𝗳𝗹𝗮𝘁𝗶𝗼𝗻  reaching Parity levels going into 2025... ◾ The annual inflation rate in the US rose for a 2nd consecutive month to 𝟮.𝟳% in November 2024 from 2.6% in October. ◾ The annual GDP growth rate expanded 𝟮.𝟳% year-on-year in the third quarter of 2024, slowing slightly from a 3% rise in the previous period. ◾ U.S. GDP Growth is slowing down, and Inflation is unable to ease below the Fed's 2% target. ◾ More than $21 trillion of U.S. Dollar Money supply continues to slush around in the economy, ◾ Interest payments on $36 trillion federal debt continues to compound with higher for longer Fed Funds Rate. ⚠️ In reality ⚠️: ◾ The Fed can't hike rates further (Interest payments) ◾ The Fed can't hold rates longer (Growth Slowing) ◾ The Fed can't cut rates further (Sticky Inflation) 𝗜𝗻𝗳𝗹𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗿𝗮𝘁𝗲 𝗿𝗶𝘀𝗸𝘀 𝗴𝗼𝗶𝗻𝗴 𝗶𝗻𝘁𝗼 𝟮𝟬𝟮𝟱... #US #Growth #Inflation #InterestRates #Fed #Markets #Economy #BewareOfTheNarrative

IT'S FED MEETING WEEK! We had some mixed news last week. The Q1 2024 GDP was much lower than expected, but it showed that inflation for the quarter was higher than estimated. Then we had the PCE numbers (the Fed's favorite inflation gauge) for March come in pretty much as anticipated, with a couple numbers being marginally higher. We don't have much economic news this week, but we do have the FOMC meeting tomorrow and Wednesday. Along with everyone else, I do not expect them to raise or cut the fed funds rate. Economists and The Street will be focused on the dovish or hawkish tone that Fed Chair Powell uses during his press conference Wednesday at 2:00 EDT. My guess? He will try to sound tough, but he will lean more toward the dovish side. I still expect two rates cuts this year, even though many analysts are now saying either one or no rate cuts at all in 2024. Why? It's an election year, we cannot afford the interest payments on our own national debt moving forward, and there are enough signs that the economy is slowing that the Fed will want to cut rates. Remember, they are still trying to save face here. Experts still remember when they wrongly labeled inflation "transitory" in 2021, which made them late to the game with raising rates to fight that inflation. They do not want to wait too long to make adjustments again, which may cause the economy to go into a recession instead of having the "soft landing" many have predicted. #fed #rates

The Federal Reserve has decided to hold interest rates steady for now, but they've indicated a more cautious approach to future rate cuts than previously anticipated. Key takeaways from the Fed's announcement: 1️⃣ One Rate Cut Expected This Year: The Fed is now projecting only one rate cut by the end of 2024, compared to the three predicted in March. 2️⃣ Higher Long-Term Interest Rates: The Fed also signaled that it believes the long-run interest rate will be higher than previously thought. 3️⃣ Modest Progress on Inflation: While inflation has eased, it remains elevated. The Fed expects inflation to return to its 2% target by 2026. What does this mean for you? It's a reminder that the economic landscape is constantly evolving. #Fed #InterestRates #Inflation #Economy #Investing https://lnkd.in/gHWPxxWr

The Federal Reserve has decided to hold interest rates steady for now, but they've indicated a more cautious approach to future rate cuts than previously anticipated. Key takeaways from the Fed's announcement: 1️⃣ One Rate Cut Expected This Year: The Fed is now projecting only one rate cut by the end of 2024, compared to the three predicted in March. 2️⃣ Higher Long-Term Interest Rates: The Fed also signaled that it believes the long-run interest rate will be higher than previously thought. 3️⃣ Modest Progress on Inflation: While inflation has eased, it remains elevated. The Fed expects inflation to return to its 2% target by 2026. What does this mean for you? It's a reminder that the economic landscape is constantly evolving. #Fed #InterestRates #Inflation #Economy #Investing Source: https://lnkd.in/g_vrfhtY