Fed Moves to Cut Rates
After three years of interest rate increases, the Federal Reserve announced this past Friday that as inflation has fallen back to target, the time has come to cut interest rates and support the economy.
In this week’s stock market update, we will review why the move to cut interest rates is important, how it may impact your portfolio, what is happening to market breadth, and which sectors may benefit the most from lower interest rates.
Key Takeaways
- Powell and the Fed are preparing the country for lower interest rates
- We need to adjust for a lower rate environment and consider assets that potentially benefit from low rates
- Market breadth is expanding, and credit spreads remain tame
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