Rate Watch for the End of the First Quarter
By Matt Brady, One of San Diego's Best Equity Advisors
(Watermark Capital)
As expected, the Fed kept rates unchanged last Wednesday. They reiterated a few things that instilled confidence in the markets. 1. Inflation is continuing to come down. The markets liked hearing this from the Fed as we were coming off the heels of a few hotter-than-expected inflation reports.2. We are at peak rates for this cycle. This leaves the Fed with the possibility of only pausing or cutting at future Fed meetings. 3. We are still on pace for 3 rate cuts for 75 bps. The Fed let the markets know this is still the plan and the markets were happy to hear that. Rates have been propelled higher in recent weeks due to the higher-than-expected inflation reports. The Fed meeting was a breath of fresh air though and allowed for rates to come down a bit. Looking ahead, the next Fed meeting...
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