What a Dovish Federal Reserve Means for 2024 | Editor’s Note: On Tuesday, December 12, at 7 p.m. Eastern time, Louis Navellier, Eric Fry and Luke Lango are gathering for a special event – the Early Warning Summit 2024– to give you their investing game plan for 2024. It’s a strategy that could outperform the market by 5X or more next year, no matter what happens. Sign up and reserve your spot for the event here.
In preparation for that event, we recently recorded a few videos where we ask Louis, Luke and Eric for their honest opinions on some of the most heated topics in today’s investing world. And over the next few days, InvestorPlace Editor in Chief Luis Hernandez is bringing those videos to you. Take it away, Luis. | | | The Federal Reserve Turns Dovish The Federal Reserve has been hawkish for much of 2022 and 2023, having increased the federal funds rate 11 times since March 2022 in its attempt to rein in inflation. This brings the federal funds rate to 5.25% to 5.50%. However, when inflation cooled in the latter part of 2023, the central bank stopped raising rates and turned more dovish.
For example, a well-known hawk on the Federal Reserve’s Board of Governors – Christopher Waller – recently provided dovish comments. He stated, “I am increasingly confident that policy is currently well positioned to slow the economy and get inflation back to 2%.” And he even noted that if inflation continues to cool off for the next several months, then the Fed could cut key interest rates. In addition, Fed officials say that the Fed does not want to overshoot by raising key interest rates higher and subsequently hinder economic growth. Fed Chair Jerome Powell also recently implied, at the December Federal Open Market Committee (FOMC) meeting, that the “dot plot” would be updated and likely signal no more key interest rate hikes.
Given the dovish Federal Reserve, Wall Street is now betting that the central bank will start lowering rates next year.
In addition, Fed officials say that the Fed does not want to overshoot by raising key interest rates higher and subsequently hinder economic growth. Fed Chair Jerome Powell also recently implied, at the December Federal Open Market Committee (FOMC) meeting, that the “dot plot” would be updated and likely signal no more key interest rate hikes. So, what can we expect from the Fed in 2024?
Click here or the play button below to get Louis’ answer. He also shares his views on earnings and on whether we should expect the recent growth to continue into the New Year.
 Remember: On Tuesday, December 12, at 7 p.m. Eastern time, Louis is joining Luke and Eric for the Early Warning Summit 2024, where they will give us their investing game plan for 2024.
It’s a strategy that could outperform the markets by 5X or more next year, no matter what happens.
Sign up for the event here.
Till then…
Regards, |
| Luis Hernandez
Editor in Chief, InvestorPlace
P.S. Tomorrow, I’ll share another one of my video calls. In this one, Eric Fry tells us his thoughts on the likelihood of a recession in 2024 – and he reveals the sector he is the most bullish on for next year. See you then! |
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