This afternoon, the Federal Reserve is poised to cut interest rates, marking the first step on their journey to normalization. This action kicks off multiple rate reductions expected to unfold throughout 2025+, creating a new cutting cycle that will ripple through markets and the broader economy in the months ahead.
To provide deeper insights at this crucial juncture, I recently sat down with Bloomberg Opinion columnist Conor Sen for our latest podcast episode, "2 Firetrucks Are Better Than 1." We explore why the Fed is positioned to cut rates now, how quickly they might move, and why a robust policy response (our "two firetrucks" analogy) could be key to navigating the challenges ahead.
The boom from Covid is over and the inflation spike + subsequent rate hikes have concluded, putting us in the end stage of the bullwhip economy. Now, as we transition into this new phase, rate cuts are the necessary first step to normalize and reinvigorate our economy.
While market volatility may increase as we adapt to this new regime, remember that these transitions often create opportunities. Our tested investing framework and balanced approach position us well to navigate these shifts and keep focus on your long-term financial goals.
Click the link below or search "Doxa Takes" on Apple Podcasts, Spotify, or Overcast. Enjoy!
