Compare
Individual access. Institutional-grade trading.
Trade
Individual access. Institutional-grade trading.
Company
Individual access. Institutional-grade trading.
About Raze
Legal
Promotions
The Federal Reserve (Fed) made its second interest rate cut of the year at the end of last week, after which Fed Chair Jerome Powell took the time to share several key points:
The Fed has to follow Trump's lead, whether it wants to or not. This could lead to higher inflation, which needs to be watched carefully.
Right now, there's a 71% chance of another small rate cut in December. This comes after the US election and the recent Fed cut. Interest rates on short-term and long-term government bonds have gone down after rising earlier.
If inflation stays high and the economy remains strong, some investors might push interest rates higher.
There are even rumours that long-term rates could go up to 5%. This would cancel out the effects of the Fed's rate cuts and hurt market confidence.
Last week was great for US stock market investors. Trump won the election and the Fed lowered interest rates. This led to record highs for major stock indexes like the S&P 500, Nasdaq 100, and Dow Jones.
Smaller companies' stocks didn't do as well because of worries about higher interest rates. Medium-sized companies might be a good option for investors who think large companies are too expensive right now because of Trump's policies.
