pino428 @pino428: "𝘿𝙚𝙖𝙧 𝙘𝙤𝙥𝙞𝙚𝙧𝙨 𝙖𝙣𝙙 𝙛𝙤𝙡𝙡𝙤𝙬𝙚𝙧, 𝙬𝙚𝙡𝙘𝙤𝙢𝙚..."

Italy

𝘿𝙚𝙖𝙧 𝙘𝙤𝙥𝙞𝙚𝙧𝙨 𝙖𝙣𝙙 𝙛𝙤𝙡𝙡𝙤𝙬𝙚𝙧, 𝙬𝙚𝙡𝙘𝙤𝙢𝙚 𝙗𝙖𝙘𝙠. Last week we saw high market volatility, with the vix making its largest percentage move in decades, after FED’s meeting. Below are some key points regarding the FOMC: - The Federal Reserve has reduced its key interest rate by 25 basis points, setting the target range at 4.25%-4.50%. - Cleveland Fed President Beth Hammack voted against the rate cut, favoring no change, marking the second such dissent since the Fed began cutting rates in September. - The median forecast anticipates a 50 basis point rate cut in 2025, bringing the rate to 3.9%. However, the dot plot projections suggest a 50 basis point rate cut in 2025, implying only two quarter-point cuts next year. - The median Fed official expects PCE inflation to reach 2.5% by the end of 2025, up from a previous forecast of 2.1% in September. - The risks to meeting employment and inflation targets are “roughly balanced.” Policymakers have effectively postponed the timeline to return to the 2% inflation target by a full year. The previous median forecast in September was for a 2.1% PCE increase next year, near their target. Now, the forecast is 2.5%, with 2.1% expected for 2026. - Fed officials also project a 4.3% unemployment rate for the upcoming year. 𝙏𝙝𝙚 𝙩𝙝𝙞𝙧𝙙-𝙦𝙪𝙖𝙧𝙩𝙚𝙧 𝙂𝘿𝙋 was revised upward to a 3.1% annualized growth rate, exceeding the previous 2.8% estimate. This reflects robust consumer spending and a boost from exports. 𝙋𝘾𝙀 rose by 0.28% month-over-month and 2.94% year-over-year, reflecting a slower pace compared to the previous month. 𝘿𝙪𝙧𝙖𝙗𝙡𝙚 𝙜𝙤𝙤𝙙𝙨 𝙖𝙣𝙙 𝙬𝙖𝙜𝙚𝙨 increased by +5.7% and +5.6% respectively. 𝘾𝙤𝙧𝙚 𝙞𝙣𝙛𝙡𝙖𝙩𝙞𝙤𝙣, increased by 0.11% month-over-month and 2.82% year-over-year, reaching its highest point in eight months. 𝙄𝙣𝙞𝙩𝙞𝙖𝙡 𝙟𝙤𝙗𝙡𝙚𝙨𝙨 𝙘𝙡𝙖𝙞𝙢𝙨 dropped to 220,000, signaling a resilient labor market 𝙄𝙢𝙥𝙡𝙞𝙘𝙖𝙩𝙞𝙤𝙣𝙨: The U.S. economy is finishing 2024 with strong momentum, which could lead the Federal Reserve to keep interest rates elevated for an extended period to curb the risk of inflation returning. High long-term rates bring pain to asset classes such as long-term government bonds, utilities and REITs, the sectors most affected by this scenario. Thank you for your support. $XLU (Utilities Select Sector SPDR) $TLT (iShares 20+ Year Treasury Bond ETF ) $AMZN (Amazon.com Inc)

3 Mentioned

XLU

Utilities Select Sector SPDR

TLT

iShares 20+ Year Treasury Bond ETF

AMZN

Amazon.com Inc

Strictly Necessary Cookies

Performance Cookies

Functional Cookies

Targeting Cookies