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Get Ready to Save: Fed Predicts Interest Rates to Drop to 4.60% by 2024, Don’t Miss Out on the Opportunity!

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  • Fed Expects Interest Rates to Fall to 4.60% in 2024, Buyers Pounce!
  • The Federal Reserve gives its first clear signal that rates will be cut in 2024!
  • Analysts expect the Federal Fund Rate to decline to 4.50%.
  • The USA100 is close to breaking its all-time highs after rising a further 1.65% since the Fed’s rate decision.
  • The Dollar declined to a 19-week low against the Japanese Yen.

USA100 Close to Reaching All-Time Highs!

The USA100 rose in value for a sixth consecutive day and if the volatility levels continue, the asset will be on track to complete its strongest week of the year. Investors heavily exposed their portfolios to the US stock market and particularly the tech sector. Investors show a clear “risk-on” appetite which can also be seen in bond yields which again collapsed. In addition to this, other safe haven assets, such as the Dollar, fell a whole 1%. The cheaper Dollar and lower bond yields are likely to support the US stock market if they follow the market’s traditional “domino effect”.

The Fed President speech made it clear that the monetary policy will be set to ensure employment remains high and that prices remain stable. The president stressed the importance of keeping inflation stable and not necessarily applying further downward pressure. The press conference reassured many investors and improved investor sentiment. The Federal Open Market Committee’s new forecast points to interest rates declining to 4.60% in 2024, 3.60% in 2025 and 2.90% in 2026. As a result, the cost of debt will decline and consumer demand may rise, supporting companies within the USA100.

In addition to the Fed’s forward guidance, the latest Producer Price Index is also supporting stocks. Producer inflation read 0.00%, which is lower than the previous 0.2% expectation. As a result, investors continue to predict that inflation will remain controlled and potentially decline further in the next 2 months. For inflation to remain stable, investors will also be monitoring oil prices aiming for crude oil to mainly trade below $70 per barrel.

In terms of technical analysis, the price of the USA100 remains within the bullish trend zone of the regression channel. In addition to this, the price trades above the price sentiment line and the trend-based moving average. For this reason, technical analysis indicates an upward trend going forward similar to fundamental analysis. However, most Oscillators indicate the price is “overbought”. Therefore, it is important to consider the appropriate price to speculate the upward price movement.

Lastly, the monetary policy of the Swiss National Bank, European Central Bank and Bank of England will influence the USA100. Buyers and bulls will ideally be hoping for a similar dovish tone. In addition to this, investors will be hoping for higher-than-expected US Retail Sales.


USDJPY – Japanese Yen Takes Advantage of Dollar Weakness

Investors looking to avoid “news risk” may look to the Japanese Yen which is not expecting any major news during this morning’s European and Asian session. The Japanese Yen is increasing in value against all major currencies including the US Dollar, Euro and Pound during this morning’s session. The exchange rate has also declined for three consecutive days and the Dollar Index is trading 0.19% lower this morning.

This week, Japan has released various data regarding the economy and confidence which have read stronger than expected. Thus, the confidence of national business has almost reached two-year highs, which, according to experts, confirms the stability of the country’s economy in the context of the global crisis and gives the regulator grounds to reduce incentives and move to a tighter monetary policy.

The USDJPY is not oversold, similar to other currency pairs, which still gives an opportunity for traders to speculate. Sell signals are likely to arise from technical analysis if the price declines below 141.285.

Click here to access our Economic Calendar

Michalis Efthymiou

Market Analyst

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

Get Ready to Save: Fed Predicts Interest Rates to Drop to 4.60% by 2024, Don’t Miss Out on the Opportunity!

Are you looking for ways to save money? Is it getting harder and harder to make ends meet? Well, we have some good news for you. According to the Federal Reserve, interest rates are expected to drop to 4.60% by 2024. This means that you have a great opportunity to save some serious cash in the future. In this article, we’ll explore what the Federal Reserve’s prediction means for you, and provide some tips on how you can make the most out of this potential savings opportunity.

What are Interest Rates?

Before we delve into the specifics of the Federal Reserve’s prediction, let’s first understand what interest rates are. In simple terms, interest rates are the percentage of money that must be paid on top of the principal amount when borrowing money. They are set by the Federal Reserve and are used to regulate the economy and promote growth.

Why are Interest Rates Important?

Interest rates play a crucial role in the economy as they impact everything from the cost of loans to the price of goods and services. Changes in interest rates can affect consumers, businesses, and the stock market. When interest rates are low, it typically means that the economy is struggling, and the Federal Reserve is trying to stimulate growth. Conversely, when interest rates are high, the economy is doing well, and the Federal Reserve is trying to prevent it from overheating.

What is the Federal Reserve Predicting?

The Federal Reserve has announced that it expects interest rates to drop to 4.60% by 2024. This is a significant decrease from the current rate of 4.75%. This prediction is based on their forecasts for economic growth, inflation, and employment. With the global economy still recovering from the effects of the pandemic, the Federal Reserve likely wants to continue to promote growth and support the labor market by keeping rates low.

How Can You Benefit from This Prediction?

Now that we understand the Federal Reserve’s prediction, let’s look at some practical ways you can take advantage of it and save money.

1. Refinance Your Mortgage

If you own a home, now is the perfect time to consider refinancing your mortgage. With interest rates expected to drop even further, refinancing can help you save a significant amount of money over the life of your loan. By refinancing to a lower interest rate, you can reduce your monthly payments and potentially pay off your loan faster.

Tip: Make sure to shop around and compare rates from different lenders to get the best deal.

2. Pay Down High-Interest Debt

If you have high-interest credit card debt, now is the time to pay it down. With lower interest rates, you can save money on interest charges and pay off your debt faster. This will not only save you money in the long run but also improve your credit score.

Tip: Consider using a balance transfer credit card to consolidate your debt and take advantage of a lower interest rate.

3. Start Investing

In a low-interest-rate environment, it becomes more challenging to grow your money through traditional savings accounts and bonds. This is where investing comes in. With the stock market expected to perform well in the coming years, investing in stocks and mutual funds can potentially bring you higher returns. It’s important to note that investing always comes with risks, so make sure to do your research and consult a financial advisor before making any investment decisions.

Tip: Start small and diversify your investments to minimize risks.

4. Take Advantage of Deals and Sales

Low-interest rates not only benefit those looking to borrow money, but they also make it easier for businesses to access cheap credit. As a result, companies may offer deals and discounts to attract customers. Keep an eye out for sales and take advantage of them to save money on big-ticket purchases like a car or home renovation project.

Tip: Negotiate for a lower price and ask for a better deal. With businesses trying to recover from the pandemic, they may be more willing to offer discounts to secure your business.

In conclusion, the Federal Reserve’s prediction of interest rates dropping to 4.60% by 2024 presents a golden opportunity for consumers to save money. Whether it’s through refinancing your mortgage, paying down debt, investing, or taking advantage of deals, there are plenty of ways you can make the most out of this economic outlook. Remember to always stay informed, be proactive, and make smart financial decisions to secure your financial future. Don’t miss out on this opportunity to save money and achieve your financial goals.

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