Four days until the #FOMC meeting, where Powell will likely cut by .25 (odds are currently 50% for .25 and 50% for .50). The similarities between 2007 and 2024 are wild! Charts in comments: Fed's First Rate Cut: Sept 18, 2007 Sept 18, 2024 (high probability) Unemployment Rate Sept 2007: 4.7 Sept 2024: 4.2 US Inflation Rate YoY Sept 2007: 2.5 Sept 2024: 2.5 US Housing Starts: Sept 2007: 1.238 Sept 2024: 1.235 US Leading Economic Activity Sept 2007: 100.4 Sept 2024: 100.4 US Existing Home Sales Sept 2007: 4.5 Million Sept 2024: 3.95 Million (This post is not calling for a 2007 crash. I am simply pointing out the intriguing similarities in timing and economic indicators.$S&P 500(.SPX)$
How Will Fed's Rate Cut Affect Your Life?
Whether your are Singaporeans or Aussi or Kiwis, people with home loans could see their burden eased as banks will or already follow the Fed by significantly lowering mortgage rates. With the Fed shifting focus from rate hikes to cuts, it signals that inflation might be easing faster than expected. ----------- Do you think rate cut would bring positive impact to your life? Will your investing trend shift?
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