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Fed's 2024 Strategy: One Rate Cut Balances Inflation and Economic Growth #luxuryagentmaryland#EliteAgentMD#LuxuryPropertiesMD#dcvadreamhomes#luxurylivingvirginia#luxurylivingwashington#InterestRates2024#MortgageRates

Fed's 2024 Strategy: One Rate Cut Balances Inflation and Economic Growth #luxuryagentmaryland#EliteAgentMD#LuxuryPropertiesMD#dcvadreamhomes#luxurylivingvirginia#luxurylivingwashington#InterestRates2024#MortgageRates

🎙️New Market Commentary from Rick Wedell 🎙️ "The S&P500 has traded down in early April as the narrative on inflation and interest rates has shifted. Higher reads on core inflation for the first three months of the year are re-framing the market expectations for interest rate cuts throughout 2024." In this edition of our Market Commentary, Rick Wedell breaks down the historical pattern of inflation data, explains why the Fed might be on pause for a while, and then offers some thoughts on why what is happening in the market may be better than you think. Watch the video 👇 #MarketUpdate #RIAoftheFuture #InterestRates

We continue to find that a September pivot is the most likely outcome, owing to elevated YoY inflation over the next three months. According to Numera Analytics Chief Strategist Joaquin Kritz Lara, the market is properly assessing the Fed path this year, but is pricing an excessively high terminal rate. In this month’s US Macro Strategist, the focus is on inflation risks and their impact on bond market volatility. The report investigates whether inflation progress is back on track and how a lower inflation run rate or upcoming inflation surprises affect the risk-reward profile of Treasury debt. For a complimentary copy of the report, click here: https://lnkd.in/eYTwuhwu #inflation #fed #fedpivot #terminalrate #treasuries

For the Fed, shifting its stance on inflation from a target of 2% to a range of 2-3%, as suggested by Mohamed El-Erian may be the best path forward. It provides the Fed with greatest flexibility around rates since it would allow them to keep rates at current levels or lower even in the face of higher inflation prints. The Fed will then not be forced to inflict further pain by raising rates and risking something breaking (either bank balance sheets, leveraged debt interest rates reaching unsustainable levels etc.) while retaining the option to lower rates in the event of a shock. Such a policy should lower the risk of economic pain (positive for risk assets) but would require recalibrating steady state inflation assumptions (higher). Not investment advice and this opinion is not an input or feature of any systematic models used by Alpha Fusion. #macro #assetallocation https://lnkd.in/eMzVpyEV

In this week’s #InvestmentUpdate, we discuss the Fed signaling that rates will stay high, how those rates are affecting the housing market, disappointing inflation data and a drop in equity markets. Check it out: https://brev.is/OtNoE

This week, we’ll get inflation data that will give us clues as to when the Fed may cut rates. Join CIO Gene Goldman, CFA on the latest episode of #TheWeekAhead as he poses three key questions to help us understand when the #Fed will likely cut interest rates this year. https://lnkd.in/eBGrDfHG

🔍 Market heads-up: Despite hopes for quick rate cuts, the Fed’s saying ‘not so fast’. They’re focusing on keeping rates as is or even raising them to tackle inflation. Powell’s message: We’re not ready to cut rates yet. With inflation slowly easing, there’s a bit of light, but the main goal is getting inflation down to 2%. Stay tuned for more updates! 🏦💡 #InterestRates #EconomicUpdate #FedWatch #MarketRealities #InflationFocus #SmartInvesting #FinancialUpdates #longislandrealestate