MEDIA

The SIA Report Q3 2024

By Gene Balas, CFA®
Investment Strategist

Fed Rate Cuts: Implications for Your Portfolio

After an unprecedented rate-hiking cycle aimed at controlling the inflationary effects of Covid-era stimulus, the Federal Reserve (Fed) appears largely on track in its goal of combating inflation. Now, the Fed seems to have entered a new phase of rate cutting in hopes of achieving a soft economic landing. Most recently, the Fed announced its latest rate cut and signaled plans for only two more cuts in 2025, reinforcing its commitment to a cautious approach. One might ask, however, why is the Fed even cutting rates in the first place—and what does that mean for your portfolio?

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