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Here's When the Fed Is Likely to Cut Interest Rates Again, and What It Means for Stocks

The Motley Fool
Summary
Nutrition label

79% Informative

The Federal Reserve will hold its first policy meeting of the year on Jan. 28 and 29 .

It is widely expected to keep interest rates right where they are after cutting three times since September .

Lower rates are good for stocks, but beware of short-term volatility.

The Fed is likely to pause for a while, even the CPI is still above the 2% target.

Investors don't want to see the Fed cutting rates because the economy is weak.

That would coincide with sluggish corporate earnings, which is a recipe for a decline in the S&P 500 even if rates are falling.

There is no reason to be alarmed right now, but the unemployment rate ticked higher in 2024 (from 3.7% to 4.1% ) If something worse does materialize and it triggers a correction, investors should consider it a buying opportunity.

VR Score

82

Informative language

82

Neutral language

7

Article tone

semi-formal

Language

English

Language complexity

38

Offensive language

not offensive

Hate speech

not hateful

Attention-grabbing headline

not detected

Known propaganda techniques

not detected

Time-value

short-lived

External references

12

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