Judi Pflaumer, MS, CPFA’s Post

While inflation holds significant importance within the Fed's dual mandate, which prioritizes maximum employment and price stability, it does not stand alone in the Fed's considerations. The Federal Reserve also monitors four other crucial economic sectors that provide valuable insights into the economy's overall well-being and may impact the timing of monetary policy adjustments. https://ow.ly/MZwh30sA5LE

While inflation holds significant importance within the Fed's dual mandate, which prioritizes maximum employment and price stability, it does not stand alone in the Fed's considerations. The Federal Reserve also monitors four other crucial economic sectors that provide valuable insights into the economy's overall well-being and may impact the timing of monetary policy adjustments. https://ow.ly/NMoy30sAbF4

Inflation is down, equity markets are strong, and the labor market continues to demonstrate resiliency—all of which points to a “soft landing” for the U.S. economy. But as BMO’s Deputy Chief Economist Michael Gregory explains, the Federal Reserve will likely remain cautious when it comes to interest rate cuts through 2024. You can read the article here to find out why: https://lnkd.in/gJx-uv9p   

https://lnkd.in/djM4n8nh HIGHER INTEREST RATES FOR LONGER DUE TO THE INCREASING DEFICIT. Using government stimulus money to help the economy rebound during the pandemic made sense, given the unprecedented circumstances, however, the overwhelming use of federal funds in the aftermath has, as the article states, allowed the creation of a ghost, which has been, according to researches, the main cause of inflation and will diminish growth expectations. Currently, the FED has room to reduce interest rates immediately, but when the federal government overstimulates the economy, the Federal Reserve has to delay decreasing interest rates, raising the risk of recession. The more overstimulation there is, the more hawkish the Fed must be for controlling inflation, and the danger of a recession increases.

The US economy is too strong for rate cuts. We’ve experienced wild economic swings, inflation, financial markets, and fiscal and monetary policy since COVID. The Fed usually begins a rate-cutting cycle after recessions, but not when growth is strong. Read more from Atlas Merchant Capital LLC's Larry Kantor and Bob Diamond here: https://hubs.la/Q02kbjn80 #ratecuts #economy #finance #useconomy. #us #monetarypolicy

🔥 The Federal Reserve’s recent decision to cut interest rates by 50 basis points reflects a critical juncture in the U.S. economic landscape. As inflation eases and the job market softens, the Fed has taken a more cautious stance, signaling that further rate cuts are on the horizon for 2024. 💡 From my perspective, this move isn't just about economic adjustment—it's about finding balance amidst uncertainty. 📈 For businesses, this reduction offers a potential reprieve from the high borrowing costs we've faced over the last couple of years. Reduced interest rates could spark an uptick in investment, giving companies more breathing room to expand operations or take on strategic initiatives that might have been postponed during the tighter monetary policy phase. 🛍 On the consumer front, lower borrowing rates might stimulate spending, particularly in sectors like housing, where mortgage rates could fall. ⚠️ However, we must tread carefully. While lower rates can stimulate growth, they also indicate that the economy is entering a phase of slower expansion. The Fed's actions suggest that they're aiming for a soft landing—a delicate balance between preventing recession and curbing inflation. ✅ Those in the tech and AI sectors, it presents an opportunity to scale up with more accessible capital, but it's also a call to remain agile as market conditions shift. The uncertainty surrounding future cuts means we should plan for both short-term opportunities and long-term resilience. Keeping an eye on consumer behavior and maintaining flexible financial strategies will be key to navigating these changing tides. At Madco Tech Pte Ltd, for instance, we're looking at this as an opportunity to grow responsibly, but with an understanding that external forces can shift at any time. As always, the future of the economy will unfold in unpredictable ways, but thoughtful, well-timed actions can turn challenges into new avenues of growth. #EconomicShift #InterestRates #BusinessGrowth #Inflation #FedPolicy #TechInnovation #AI #Leadership #GrowthMindset

Is a recession coming this year? 👀 As of June 2024, the U.S. is not in a recession and some analysts and economists don't expect one in the near future. 👇 👉 Federal Reserve: The Fed's policymaking committee expects economic growth in 2024, 2025, and 2026 to be stronger than previously thought. 👉 U.S. Bank: Rob Haworth, senior investment strategy director, says the economy seems to be on a path of "modest, steady economic activity" and doesn't see signs of a serious recession risk. 👉 Many economists including members of the Federal Open Market Committee (FOMC), expect a "soft landing" for the U.S. economy in 2024, which means slowing GDP growth but no recession. Good news! 🙌 *Securities and advisory services offered through Commonwealth Financial Network ®, member FINRA/SIPC, a registered investment adviser. Fixed insurance products and services are separate from and not offered through Commonwealth Financial Network ®.

Been saying for a while, I think at most two rate cuts this year, most likely just ONE and maybe even ZERO! 😲 It was unthinkable to say that 6 months ago, but the economy and inflation keep chugging along, so no reason for the FED to take any action! 💲 Comment below if you want to discuss with me on how this affects your strategy! #financialplanning #investing #moneyhacks #retirementplanning

Transformative Growth: Perspectives Beyond the Election, the Fed & the Yield Curve » Uncertainty around the November election and U.S. Federal Reserve policy shift may cause near-term volatility and potential buying opportunities. » The economy, inflation, and jobs growth are getting back to normal.   » Beyond near-term uncertainty lies a new era of growth and prosperity driven by a strong U.S. private sector. » Managing risk with a focus on quality equity and fixed income will likely lead to the best near-term results. Learn more here: https://lnkd.in/gcD6WXPX

The US #economy is still going strong. Many feel an #InterestRate cut won't take place until mid-Summer. #Inflation is still a problem that the Fed is monitoring, and interest rates are one tool they use to fight it off. Read more: #business #interest