Expecting the Fed to Cut Rates in 2024? Here's How to Protect Your Portfolio if It Doesn't.
The last couple of years have been interesting from a macroeconomic perspective. Following a surge in consumer demand after the worst days of the pandemic, coupled with supply chain bottlenecks, the U.S. started experiencing inflation not seen in decades toward the second half of 2021.
Consequently, the Federal Reserve embarked on its most aggressive rate-hiking path ever starting in March 2022. The goal was to curb these inflationary pressures. Based on the latest Consumer Price Index (CPI) data, things are heading in the right direction.
The encouraging trend has resulted in the Fed signaling that it will cut interest rates multiple times this year, a scenario the market already seems to be excited about. That's evidenced by the S 500 index and Nasdaq Composite Index rising 9.7% and 9.4%, respectively, this year (as of March 25), following huge gains in 2023.
Source Fool.com
