Let's talk about rates, expectations, and the election....
Belle of the Ranch
Belle of the Ranch
4.9 • 1K Ratings
🗓️ 18 September 2024
⏱️ 4 minutes
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Summary
Let's talk about rates, expectations, and the election....
Transcript
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| 0:00.0 | Well, howdy there internet people, it's Bell again. |
| 0:04.0 | So today, we're going to talk about interest rates, expectations, and ups and downs. |
| 0:10.0 | Right now, the financial world is waiting with baited breath for news from Federal Reserve Chair Powell. |
| 0:16.0 | The questions are swirling. Are they going to cut rates? By how much? Will there be another cut later? |
| 0:23.0 | So, the answer to the first question is almost certainly yes. |
| 0:27.0 | They will cut interest rates. |
| 0:29.0 | Inflation is dropped into the range that will make the Fed want to focus more on the job market. |
| 0:35.2 | Because inflation is dropped within range, the Fed will view it as a priority to look at other |
| 0:39.7 | factors in the economy and make decisions to keep those strong? |
| 0:44.0 | But that's the only question that's easy to answer. |
| 0:47.0 | That might spell a volatile week for the stock market. |
| 0:51.0 | Under normal circumstances, market insiders have a pretty clear picture of what will be |
| 0:56.2 | announced before it's announced. They tend to have good insight into the |
| 1:00.9 | economic forecast and the plan to keep things stable. |
| 1:05.2 | They don't hear. |
| 1:06.8 | There's a lot of debate and expectation about the size of the interest rate cut. |
| 1:11.9 | Some investors expect a large rate cut. Some expect one |
| 1:15.5 | that's more modest. Because there is a debate, investors who are emotionally on |
| 1:20.6 | any side of the debate might overreact if their particular expectation is not met. |
| 1:27.0 | Markets like certainty, and well, there just isn't that level of certainty they prefer. On top of that, economic projections will be released. |
| 1:37.3 | The projections normally include estimates of where rates are headed in the future. |
| 1:42.8 | Investors might also emotionally react to this. |
... |
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