Muhammad Shafiul Munir’s Post

🚨 Fed Update: What You Need to Know 🚨 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%. But here’s the key takeaway: the Fed is signaling just two rate cuts for 2025, down from the four they projected in September. What this means for you: * The economy remains resilient, with GDP growth and corporate earnings looking strong heading into 2025. * Borrowing costs, especially for mortgages and business loans, might not ease as quickly as expected. * It’s a great time to review your portfolio and focus on sectors that perform well in a stable or slightly restrictive monetary environments. The Fed’s cautious approach signals a delicate balance: keeping inflation in check while supporting economic growth. What do you think of the Fed, inflation, and the stock market in 2025? Follow me for more updates and money tips. #FinancialAdvisor #Fed #LITrendingTopics #Investing #Inflation

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

The bond market has been on a tear, which has positively impacted interest rates. As of this morning, the yield on the Ten-Year Treasuries was at 3.70%. Economic data and the Fed's take on it are increasingly suggesting a rate cut might be on the horizon. Treasury yields and interest rates tend to shift in anticipation of Fed moves, which helps explain why rates have improved so much over the past five months, even though the Fed Funds Rate hasn’t changed. Over the next few days, we'll be keeping an eye on economic data to see how it might affect the Fed’s rate cut announcement next week. Right now, the market expects at least a 0.25% cut. But if inflation data (coming out Wednesday and Thursday) is lower than expected or if Jobless Claims (due Thursday) are much higher, a 0.50% cut might be possible, though it’s not very likely. Either way, we should have a clearer picture soon...

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

The Fed Hits Pause: Rate Cuts on Hold Until 2025? The Federal Reserve decided to hold interest rates steady this week, signaling a continued focus on battling inflation. While some anticipated a shift towards rate cuts, recent economic data suggests progress on inflation has stalled. My analysis posted in the last few months links below clearly outlined this stance : 1)https://lnkd.in/gdBurEGS 2)https://lnkd.in/gtqK66wP and points to a longer wait for rate relief. Here's why I believe rate cuts are likely a long way off, potentially not until March 2025: Stubborn Inflation: Recent data shows inflation remains stubbornly high. The Fed's target is 2%, but current figures are significantly higher. Until inflation shows a sustained decline towards this target, the Fed is unlikely to loosen its grip on interest rates. Strong Job Market: The job market continues to be robust. While this is positive news overall, a hot labor market can contribute to inflationary pressures. The Fed may want to see some cooling in the job market before considering rate cuts. Fed's Commitment: The Fed has clearly communicated its commitment to bringing down inflation. They've indicated a willingness to hold rates steady, or even raise them further, if necessary to achieve their goals. What This Means for You: Borrowing costs are likely to remain high for an extended period. This could impact your decisions on things like mortgages, car loans, and credit card debt. It's important to factor in these higher interest rates when making financial decisions. Stay Informed:Stay tuned for further analysis on the Fed's policy and its impact on the economy. #FederalReserve #InterestRates #Economy #Inflation #Markets #FederalReservePolicy #MonetaryPolicy #CentralBanks #CostOfLiving #GlobalEconomy #FinancialMarkets #InterestRateHike #EmergingMarkets

In their latest projections, the Federal Reserve has adjusted its economic outlook from December, indicating a more optimistic view on real GDP growth (2.1% vs 1.4%), lower unemployment rate forecast (4.0% vs 4.1%), and an increased expectation for core PCE inflation (2.6% vs 2.4%). Despite the hotter forecasts, the Fed continues to signal the possibility of three interest rate cuts, mirroring its previous stance in December. This might seem paradoxical amidst expectations of robust economic indicators. However, their dovish stance seems logical when we look at the historical difference between inflation (as measured by Core CPI) and the fed funds rates in the figure below. The fed funds rates are at their most restrictive level in the past 17 years. #stocks #trading #investments