3 Stocks to Buy Before the Fed Cuts Interest Rates in 2024
The Federal Reserve gave borrowers some good news last month. Not only did it elect to keep interest rates steady, but it also indicated cuts to the all-important federal funds rate. The median estimate calls for three rate cuts by the end of 2024.
The federal funds rate is the rate at which banks lend each other money, and it's the biggest determinant of rates for just about every type of loan from a government bond to a home mortgage. The Federal Reserve is in charge of setting that rate, and by extension the cost to borrow for everyone from the government to consumers to businesses.
While the Fed forecasts just three interest rate cuts, Wall Street is more optimistic. The average futures trader expects six rate cuts by the end of the year, bringing the top end of the Fed funds target rate from 5.5% to just 4%.
Source Fool.com
