The Federal Reserve signals interest rate cuts by 2024 - effects on the stock market and investment opportunities explains financial expert Tim Oechsner.

The Federal Reserve signals interest rate cuts by 2024 - effects on the stock market and investment opportunities explains financial expert Tim Oechsner.

According to a report by www.deraktionaer.tv, the Federal Reserve paused interest rates in December and signaled that three rate cuts are expected in 2024. Fed Chairman Jerome Powell's statements led to a 1.4 percent rise in major US indices, with the Dow Jones rising above the 37,000 point mark for the first time. The DAX also reached a record high and exceeded the 17,000 mark.

The Federal Reserve's announcement of a pause on interest rates signals to investors that interest rates will remain low and monetary policy will remain accommodative. This could lead to further upside in equity markets as low interest rates increase the attractiveness of stocks compared to fixed income.

The expectation of three interest rate cuts by 2024 suggests that the Federal Reserve is committed to supporting the economic recovery and mitigating any potential risks. This measure could also help keep borrowing costs low for businesses and consumers, which could have a positive impact on investment and consumption.

Overall, the Federal Reserve's statements could support stock markets and lead to continued euphoria, especially if companies continue to post solid earnings and the economic recovery gains momentum. However, financial experts should continue to monitor developments closely as unforeseen events or changes in monetary policy could lead to volatility.