Berend van Roijen, CFA, CAIA, CES’ Post

🚨The US Federal Reserve Cuts Interest Rates for the First Time in 4 Years 🚨 The Federal Reserve has made a pivotal move, cutting interest rates by 50 basis points – the first cut in four years! After raising rates aggressively to combat the highest inflation surge in decades, this marks a shift in strategy. Fed Chair Jerome Powell expressed confidence in a balanced path forward, aiming to maintain a strong labor market while guiding inflation down to the 2% target. With another potential rate of 25bps in November and December, the focus remains on sustainable economic growth. This decision comes at a critical time, just ahead of the November elections, though Powell insists it’s not "politically motivated" After the BOJ raised interest rates, the Feds have reduced it. It seems we are witnessing one of the most exciting domino effects of the finance world .All eyes are now on how global central banks will respond – this is a move that could shape economic trends worldwide. Are we heading to the recession that we were threatened within 2022-2023? #FederalReserve #Economy #InterestRates #Inflation #Finance #EconomicGrowth

Has the US Federal Reserve waited too long to cut rates? Morningstar The Federal Reserve's strategy to maintain high interest rates amid cooling inflation and a resilient labour market has sparked debate. With some analysts urging immediate cuts to prevent a potential recession and others advocating patience to avoid reigniting inflation, the central bank faces a delicate balancing act. Investors are keenly watching for the Fed's next move, which could have significant implications for the broader economy. 🔗 Read the full article on Investment IQ: https://incm.pub/4ceegNU #investing #assetmanagement #wealthmanagement #finance

Has the US Federal Reserve waited too long to cut rates? Morningstar The Federal Reserve's strategy to maintain high interest rates amid cooling inflation and a resilient labour market has sparked debate. With some analysts urging immediate cuts to prevent a potential recession and others advocating patience to avoid reigniting inflation, the central bank faces a delicate balancing act. Investors are keenly watching for the Fed's next move, which could have significant implications for the broader economy. 🔗 Read the full article on Investment IQ: https://incm.pub/4cld4Iq #investing #assetmanagement #wealthmanagement #finance

Federal Reserve Chair Jay Powell indicated the central bank is inching closer to feeling comfortable about interest rate cuts, saying that he was encouraged by evidence of cooler inflation and that more "good data" would help get the Fed to where it wants to be. The inflation numbers "have shown some modest further progress" after some hotter readings in the first quarter, "and more good data would strengthen our confidence that inflation is moving sustainably toward 2%," he said in testimony before US lawmakers. Powell spoke Tuesday before the Senate Banking Committee and tomorrow will testify before the House Financial Services Committee as part of his semiannual required Congressional appearances. He dropped other hints Tuesday that the environment for rate cuts is approaching, citing a jobs market that is also slowing down and attracting more attention from policymakers. "The most recent labor market data do send a pretty clear signal that labor market conditions have cooled considerably compared to where they were two years ago," he said. "This is no longer an overheated economy." More: https://lnkd.in/eqe7R3Fu #yahoofinance #finance #economics #money #inflation

Federal Reserve policymakers are hinting any interest rate cuts should be slow, but not necessarily steady. Stifel Chief Economist Lindsey Piegza, Ph.D. tells Bloomberg News, “The pathway forward, once the unwinding of policy firming has begun, is likely to be less uniform and predictable than the market is anticipating. The Fed has no incentive to rush to provide accommodation.” #federalreserve #interestrates #monetarypolicy #economy #inflation

Likely, but not certain... Powell states that officials still want to see more evidence that inflation is slowing sustainably. ""Rate cuts won’t be warranted until officials have “gained greater confidence that inflation is moving sustainably” toward the central bank’s 2% goal, Powell said in remarks prepared for delivery Wednesday before the House Financial Services Committee."" It is obvious that cutting rates too soon is a major concern for the Fed. Doing so would result in inflation picking back up and require even tighter policy in the future to get back to target. #economy #interestrates #commercialrealestate #northdakota #minnesota #southdakota

📈🐂 Fed Chair Jerome Powell has announced expected rate cuts in 2024, aiming for a 2% inflation objective. Despite easing inflation, a tight labor market persists. This news comes as the Senate Banking Committee recently questioned Powell on the Federal Reserve's monetary policy and plans for the future. #FederalReserve #JeromePowell #RateCut #Inflation #EconomicPolicy #LaborMarket #MonetaryPolicy #SenateBanking #FinanceNews #Economy #InterestRates #CentralBank #FOMC #FinancialStability #EconomicGrowth #InflationTarget #FinancialSystem #WallStreet #EconomicUpdate #FinancialMarkets #HousingCosts #SmallBusinessGrowth.

It’s good news, with a touch of uncertain caution, in Federal Reserve Chair Jerome Powell’s delivery of the central bank’s semiannual monetary policy report to Congress on Wednesday. Starting with the upside for once. “We believe that our policy rate is likely at its peak for this tightening cycle. If the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year,” Powell said. This is a more explicit embrace of eventual cuts that the Fed began in January. To read more about interest rates and the Federal Reserve, click here: https://buff.ly/437jckq. #thekinggroup #marcusmillichap #california #longbeach #realestateinvesting #CRE #multifamily #realestateinvestor #financefriday #commercialrealestate #interestrates #rates #federalreserve #economy

On Wednesday, read the Federal Reserve Board monetary policy statement, heed Powell's words, but see what's laid out in the Fed's updated set of economic projections. "Investors may glean more on the Federal Reserve’s resolve to ease monetary policy when US policymakers update their forecasts for interest rates Wednesday for the first time in three months. A 41% plurality of economists expect the Fed to signal two cuts in the closely watched “dot plot,” while an equal number expect the forecasts to show just one or no cuts at all, according to the median estimate in a Bloomberg survey." #Fed #interestrates #economy #projections #ratecuts #Powell