[Trader’s Talk] What do interest rate cuts mean for you?
[Trader’s Talk] What do interest rate cuts mean for you?
Sep 23 22:00
The long-awaited interest rate cut is finally here and what a cut it was! - a 50 basis point cut that took the market slightly by surprise.
The decision lowers the federal funds rate to a range between 4.75% - 5%. In addition to this reduction, the committee's dot plot shows the equivalent of 50 more basis points of cuts by year-end, another full percentage point in cuts by the end of 2025 and a half point in 2026. In all, the Fed's dot plot shows the benchmark rate coming down about 2 percentage points.
Beyond the interest rate cut, a major development is quietly developing under the radar. After more than 2 years, the yield curve has finally normalised.
Before each of the six US recessions since 1980 began, the curve inverted. For the four of those since 1990, the inversion switched back to a normal shape just before the recession hit. Coincidence…..or not?
What does mean for investors? What risks and opportunities are in store? How should you position your portfolio?
Come tomorrow, our chief market strategist Isaac will pull back the blinds on the interest rate cuts and the yield curve, and dive into key strategies to help you navigate this evolving landscape and uncover potential opportunities.
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Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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