46. Fed Update: What is Event Risk? Where Are Our Rate Cuts?

Market MakeHer Podcast

We recorded this on 08/01/2024, knowing that unemployment numbers will not drop until this podcast airs on 08/02/2024, and that might also change so keep that in mind.

Fed Meeting Notes aka The Powell-Point

Fed Chairman Jerome Powell announced on the latest FOMC press conference that there will NOT be any rate cuts. We're shocked, really, because we thought for sure we'd be seeing a rate cut. And we're wondering what is going on! Jess Inskip made us a Powell-Point to explain the data and what was announced this week.

It's no secret that most of us Americans are feeling the impact of higher rates to borrow money and inflation. But finally! It's not just us smaller consumers feeling the heat. Proctor & Gamble reported lower earnings, so did McDonald's, Hershey's, and WayFair. So it's clear that us consumers are finally not spending money on frivolous purchases or putting up with corporate greed anymore. And if the big companies feel it, they will have to make some changes.

Price Stability + Max Employment & Event Risk

Something feels broken. The Fed has a toolkit to use when something is broken. We have more jobless claims. On August 2nd, the monthly employment report comes out and that will tell us more about unemployment. Will we have lower unemployment? Either way, the market will react.

What does it mean for you?

We might see some sell-off in certain sectors. But that is normal rotation. Remember, this is not financial advice, but we have some episodes on What Is Inflation, CD Laddering, Bond ETFs, Are We In a Recession, etc., for you to understand what happens when the Yield Curve is de-inverted and what happens when rates inevitably get cut. Are you going to move your HYSA money into a Treasury, CD Ladder, or Bond Fund?

Investing Rollercoaster

DON'T be an emotional investor. You are buckled in for the long ride. The full rollercoaster. Time in the market is the most important and we've seen that even though the market goes up and down, the S&P 500 has continued to go up over the history of time.

Also, when rates get cut, it usually trickles down to us with more competitive loan prices (auto loan, home loans, etc.) Subscribe to our social accounts and email list to stay up to date on what is happening.

Still Have More Questions or a Comment?

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