Free Republic

Economic data across multiple metrics is coming in hot, showing the strength of the U.S. economy and the persistence of inflation in the last mile of its descent down to the Federal Reserve’s target rate of 2 percent. A March uptick in the consumer price index (CPI) to an annual 3.5-percent increase could push interest rate cuts back from their predicted start date in June. The CME FedWatch forecasting algorithm put the probability of a June cut at just 21 percent Wednesday morning. The algorithm has higher odds for a cut than a pause at the rate’s current range of...

In a surprising move, the Federal Reserve is hinting at multiple rate cuts in 2024, sparking questions about the stability of the financial system. This decision has historical echoes, as every major rate cut since the 1970s has been followed by a substantial 30% drawdown in the S&P 500. For the first time in recent history, Chair Powell’s alignment with market expectations signals a potential departure from the usual cautious stance. The market has responded positively, with the S&P 500 on track for its 9th green day out of the last 10, reflecting investor confidence in the Federal Reserve’s promises.

Utility companies annouce plans to reduce customers' energy costs. (Screenshot) From Washington, DC to Washington state, utility companies are crediting passage of Republicans’ Tax Cut and Jobs Act for their plans to lower their retail customers’ monthly bills. Company press releases announcing the rate-cut plans specifically cite “the decrease in the Corporate Tax Rate from 35 percent to 21 percent” as the reason for reducing energy rates. The utility companies that have reported plans to cut rates, thus far, include: Pepco plans to lower the bills of 296,000 electric customers in the District of Columbia, Pepco and Delmava Power...

The lords of finance are losing their touch. Institutions which dragged the world from its worst depression since the early 20th century are finally seeing their magic desert them, if conventional wisdom is to be believed. Eight years on the from the Great Recession, voices as authoritative as the International Monetary Fund and the Bank of International Settlements - dubbed the 'central bank of central banks' - have called time on the era of extraordinary monetary policy. Having hoovered up $12.3 trillion (£8.5 trillion) in financial assets and carried out 637 interest rate cuts since 2008, central banks have been stunned...

If you're saving for a retirement decades away, Thursday's big drop in the stock market shouldn't worry you too much. But something did happen this week that you can't afford to ignore: the Federal Reserve's rate cut. The Fed's actions could very well be ushering in a new era of inflation - and that is horrible news for your retirement portfolio. When you save for retirement, you're saving for a lifetime supply of food, shelter and golf fees. Over time, the prices for these things only go one way: up. The risk is that the value of the investments you're...