The effect of monetary policy

[TommyIV]

Fund manager Michael Arougheti is not worried about a recession. His numbers have him believe the 'U.S. economy is on unbelievably strong footing' thanks to a strong consumer.

He also doesn't disagree with the recent rate cut but says communication could have been clearer from the Fed on Wednesday.

Arougheti agrees that the underlying economy may justify asset price valuation but prolonged rate cuts could lead to asset values outrunning the economy.


Too many Fed rate cuts could cause stocks to outrun economy, warns money manager of $140 billion

 

[tsptalk]

Thanks to sjcook23 for sending me this link...


Here’s how the stock market tends to perform after a Fed rate cut

https://www.marketwatch.com/story/g...A63A5AE0DDB2?siteid=cm_newsletter_top_stories

 

[TommyIV]

Central banks cut rates essentially to stimulate a slowing economy. This article has some examples on how this rate cut may effect the Average American ​

Here’s what that Fed rate cut means for you