Frank Toth’s Post

#FedRateDecision *SUMMARY OF FED DECISION:* 1. Fed cuts interest rates by 25 bps in 2nd cut of 2024 2. Vote for 25 basis point rate cut was unanimous 3. Fed says risks to goals remain "roughly in balance" 4. Labor market conditions have "generally eased" 5. Fed removes "gaining confidence" on inflation moving to 2% 6. Fed will continue to reduce its balance sheet We expect another 25 basis point rate cut in December.

This week’s Fed meeting (May 1–2) will be of particular interest for markets as expectations point to a more “hawkish” stance from policymakers as they underscore the “higher for longer” narrative that interest rates may stay on hold until there’s conclusive evidence that inflation has regained downward momentum. More in our Weekly Market Commentary: https://hubs.li/Q02vGk0X0

My Big Take On Interest Rates📈 in 2024!!! The market expects just 1 Interest rate cut in 2024. However, this expectation is based on a questionnaire from FOMC members, which doesn't hold concrete significance as they are speculating like the rest of us. The Fed receives the same information we do, just a few days earlier. The Presidential Election constrains the timing of a potential cut in November for obvious reasons, and the Fed continues to be data dependent. The "last mile" is always the most challenging, and this time may not be any different. It's crucial to recognize that higher Interest rates have a substantial impact on the economy, often overlooked by many. It poses a burden that companies and households must bear. We have grown accustomed to cheap money for an extended period, but history paints a different picture. How long can the economy sustain this significant burden? I foresee two likely scenarios: either inflation diminishes further but gradually, with the 2% target remaining elusive and the Fed doesn't cut, or the economy slides into a recession prompting the Fed to cut rates aggressively. #Fed #etoro #stocks #bonds #rates #risk #recession #portfolio #sp500 #Nasdaq100 #dowjones #money #finance #financialmarkets #Election

Brace Yourself for Disappointing News From the Fed First, let’s start with some fundamental assumptions. Barclays believes the Fed will likely raise its 2024 core inflation forecast to 2.6% from 2.4%. It also expects the Fed to lift its estimate of economic growth this year to 1.8% from 1.4% in December. Those numbers would not support an argument for rate cuts. #interestrates #fed #useconomy https://lnkd.in/espFxtRb

The Federal Reserve's decision to keep rates higher for longer might not be as alarming as it seems. Why? There are a few reasons. Higher interest rates aren't substantially negatively impacting our economy or the stock market, and a higher-for-longer stance could help keep inflation in check. While this might make Wall Street and Main Street a bit uneasy, it's important to remember that these decisions are made with economic stability in mind. Weigh in below: How do you feel about the Fed's decision to keep interest rates steady but still higher than they've been? #Investing #FinanceNews #FedRate https://lnkd.in/ezBUnHGd

Your DAILY ROCKET Market Update 🚀 🚀 🚀 Bond Market Reacts to Fed Rate Cut! 📈📉 Good news for bond investors! Treasury yields are down this morning following yesterday's Fed rate cut. The 10-year Treasury yield is currently at 4.31%, down from its opening at 4.337%. This comes after the Fed lowered its target rate range to 4.5% - 4.75%. Powell seems optimistic about the economy but expressed concerns about the government's spending. He emphasized the Fed's commitment to lowering borrowing costs while keeping inflation in check and maximizing employment. 🤔 Despite the rate cut, Powell believes the current policy remains restrictive. With one more Fed meeting in December, it'll be interesting to see how new economic data influences their final decision of the year. Schedule a quick chat that fits your schedule! ➡️https://lnkd.in/gTERzfKN #bonds #treasuryyields #fed #interestrates #economy #finance #texasrealestate #austinrealestate

The Federal Reserve's decision to keep rates higher for longer might not be as alarming as it seems. Why? There are a few reasons. Higher interest rates aren't substantially negatively impacting our economy or the stock market, and a higher-for-longer stance could help keep inflation in check. While this might make Wall Street and Main Street a bit uneasy, it's important to remember that these decisions are made with economic stability in mind. Weigh in below: How do you feel about the Fed's decision to keep interest rates steady but still higher than they've been? #Investing #FinanceNews #FedRate https://lnkd.in/gAXPdJ_s

The Federal Reserve's decision to keep rates higher for longer might not be as alarming as it seems. Why? There are a few reasons. Higher interest rates aren't substantially negatively impacting our economy or the stock market, and a higher-for-longer stance could help keep inflation in check. While this might make Wall Street and Main Street a bit uneasy, it's important to remember that these decisions are made with economic stability in mind. Weigh in below: How do you feel about the Fed's decision to keep interest rates steady but still higher than they've been? #Investing #FinanceNews #FedRate Source: https://lnkd.in/gCb_Q5jE

The Federal Reserve's decision to keep rates higher for longer might not be as alarming as it seems. Why? There are a few reasons. Higher interest rates aren't substantially negatively impacting our economy or the stock market, and a higher-for-longer stance could help keep inflation in check. While this might make Wall Street and Main Street a bit uneasy, it's important to remember that these decisions are made with economic stability in mind. Weigh in below: How do you feel about the Fed's decision to keep interest rates steady but still higher than they've been? #Investing #FinanceNews #FedRate https://lnkd.in/eRtSn4Hf

The Federal Reserve's decision to keep rates higher for longer might not be as alarming as it seems. Why? There are a few reasons. Higher interest rates aren't substantially negatively impacting our economy or the stock market, and a higher-for-longer stance could help keep inflation in check. While this might make Wall Street and Main Street a bit uneasy, it's important to remember that these decisions are made with economic stability in mind. Weigh in below: How do you feel about the Fed's decision to keep interest rates steady but still higher than they've been? #Investing #FinanceNews #FedRate https://lnkd.in/gArPEeBi