The Federal Reserve Continues Slashing Even In Light Of Great Uncertainty
- The Federal Reserve cut interest rates by 25 basis points, bringing the target range to 4.50%-4.75%, following a previous 50 basis points cut in September.
- Weak job growth and lower-than-expected GDP growth influenced the rate cut, with further cuts likely, but political risks from the incoming Trump Administration loom.
- Mortgage rates have risen recently due to anticipated economic policies, complicating the housing market with higher prices and reduced affordability.
- Historically, the S&P 500 has performed well following rate cuts, but uncertainty from political changes could impact future market directions and rate decisions.
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Federal Reserve's 25-bp rate cut
Just one day after it became clear who won the 2024 Presidential Election, another interesting development occurred. But this one has more to do with the economy than it does politics. While the market was open
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