WORRIED ABOUT THE MARKET? SCHEDULE YOUR FREE PORTFOLIO REVIEW with Thoughtful Money’s endorsed financial advisors at https://www.thoughtfulmoney.com
Between February 2022 and August 2023, in order to combat hot inflation, the Federal Reserve rocketed its discount rate from near 0% to 5.25% — the most aggressive interest rate schedule in living memory.
Since then, the Fed has kept the rate at 5.25% — the ‘higher for longer’ era
But despite this, even when paired with Quantitative Tightening, economic growth remains robust, inflation is lower but is proving sticky, unemployment remains under 4%, and the stock market is at all time highs.
In short, the Fed’s aggressively restrictive policies haven’t cooled things down much. They’ve been so ineffective that even the Wall Street Journal is asking “Do interest rates really matter anymore?”
To find out, we have the great fortune of speaking today with perhaps the world’s foremost living expert on interest rates, James Grant, founder and editor of the highly-respected market journal Grant’s Interest Rate Observer.
#interestrates #inflation #recession
_____________________________________________
Thoughtful Money LLC is a Registered Investment Advisor Solicitor.
We produce educational content geared for the individual investor. It’s important to note that this content is NOT investment advice, individual or otherwise, nor should be construed as such.
We recommend that most investors, especially if inexperienced, should consider benefiting from the direction and guidance of a qualified financial advisor in good standing with the Financial Industry Regulatory Authority (FINRA) who can develop & implement a personalized financial plan based on a customer’s unique goals, needs & risk tolerance.
IMPORTANT NOTE: There are risks associated with investing in securities.
Investing in stocks, bonds, exchange traded funds, mutual funds, and money market funds involve risk of loss. Loss of principal is possible. Some high risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves special risks, including a greater volatility and political, economic and currency risks and differences in accounting methods.
A security’s or a firm’s past investment performance is not a guarantee or predictor of future investment performance.
source
Comments are closed.