Following last month’s banking crisis, investors have become more convinced the Federal Reserve will cut rates in the second half to ward off an economic downturn. Such bets have pushed bond yields lower, supporting the giant tech and growth stocks that hold sway over broad equity indexes. The S&P 500But the central bank’s more restrictive rate outlook sees borrowing costs remaining around current levels through 2023.
"Financial markets and the Federal Reserve are reading from two different playbooks," strategists at LPL Research said in a note earlier this week. For some investors, the Fed’s recent interventions to stabilize the banking system may have revived hopes of a so-called Fed-put, said Mark Hackett, chief of investment research at Nationwide, referring to expectations that the central bank will take action if stocks fall too deeply, even though it has no mandate to maintain asset prices.
The Fed will keep raising the interest rates. This way we the people will continue to go deeper into debt, paying higher interest on our debt. More losses for the workers of this country, more money for the banks. This MUST stop..🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸