Is the Era of High Interest Rates Coming to an End After 4 Years?
Next week, a major news event is expected to shake up the U.S. stock market Will the era of high interest rates finally come to an end? Next week, a major news event is expected to shake up the U.S. stock market: the September U.S. Federal Open Market Committee (FOMC) meeting. The FOMC, scheduled for September 17-18 (local time), is anticipated to decide on lowering the federal funds rate. If this happens, it will mark the end of the high-interest-rate era that has persisted since 2020. Currently, the U.S. federal funds rate stands at 5.25%-5.50%, the highest level in 23 years. Caution is Still Required Market attention is focused on how much the FOMC will lower the federal funds rate in September. Typically, rates are adjusted in 0.25% increments, but there were expectations that the FOMC might implement a larger 0.50% cut. However, these expectations have recently diminished. The U.S. has been maintaining high rates to control inflation, and the latest release of the August Core...