If you have ever listened to the news, skimmed a news app, or (if you’re really old) read a paper, odds are you’ve seen a title such as: “Fed cuts rates by x%” or “Fed raises rates by x%”.
This breakdown of how the Fed's rate decisions ripple through the economy is spot on. What strikes me most is that timing aspect you mentioned people can actualy see these changes coming based on everyday indicators like grocery prices or housing activity. The short to medium term market reactions are predictble, but your point about the long term resilience of the market is reassuring.
Thanks for the comment! Yes it's pretty amazing that simply paying attention to the cost of living can pretty accurately predict the outcome of the Fed's decision.
This breakdown of how the Fed's rate decisions ripple through the economy is spot on. What strikes me most is that timing aspect you mentioned people can actualy see these changes coming based on everyday indicators like grocery prices or housing activity. The short to medium term market reactions are predictble, but your point about the long term resilience of the market is reassuring.
Thanks for the comment! Yes it's pretty amazing that simply paying attention to the cost of living can pretty accurately predict the outcome of the Fed's decision.