Optimistic Market Update: Potential Recession Avoided & Key Insights - Sept 2023
What Happened in the Recent Federal Meeting? - In the recent Federal meeting in September 2023, there were no changes made to the main interest rate (Fed funds rate). It remains between 5.25% and 5.50%. - Everyone was expecting this decision, so no surprises there. - The main insights from the meeting will come from the Economic Projections summary and the press conference by Chair Powell. Why Does This Matter? - Any changes in the Federal statements can impact the bond market. For example, if the Federal Reserve sounds more aggressive about controlling inflation, it could lead to higher bond yields. - This summary will give us an idea about future rate changes. It will tell us if rates might go up again or when they might be reduced. What's the Current Market Situation? - The economy is doing well, and there's a chance we might avoid a recession. - However, there's been a recent increase in inflation. This has made everyone watchful about how the Federal Reserve might reac...