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US Federal Reserve leaves key interest rate unchanged, first interest rate cuts expected in 2024 - impact on stock market
According to a report from www.finanzen.at, the US Federal Reserve has left the key interest rate unchanged and signaled that interest rate cuts could be on the cards in 2024. Ed Yardeni of Yardeni Research predicts that lower interest rates will have a positive impact on the stock market. He also sees a positive trend in the area of artificial intelligence. Inflation weakened: US Federal Reserve leaves key interest rate unchanged again According to data from the US Department of Labor, inflation pressure in the USA decreased in November 2023. Consumer prices rose 0.1 percent month-on-month and 3.1 percent year-on-year. This shows weakened growth and price levels above the Fed's inflation target. …
US Federal Reserve leaves key interest rate unchanged, first interest rate cuts expected in 2024 - impact on stock market
According to a report by www.finanzen.at,
The US Federal Reserve has left the key interest rate unchanged and signaled that interest rate cuts could be imminent in 2024. Ed Yardeni of Yardeni Research predicts that lower interest rates will have a positive impact on the stock market. He also sees a positive trend in the area of artificial intelligence.
Inflation weakened: US Federal Reserve leaves key interest rate unchanged again
According to data from the US Department of Labor, inflation pressure in the US decreased in November 2023. Consumer prices rose 0.1 percent month-on-month and 3.1 percent year-on-year. This shows weakened growth and price levels above the Fed's inflation target. Nevertheless, the Fed expects an inflation rate of 2.8 percent for the full year 2023, which is lower than previously assumed. The Fed left the key interest rate unchanged and signaled possible rate cuts in 2024.
No more interest rate increases expected
Ed Yardeni commented that the Fed is on track to meet its inflation target and reduce price pressures. He stated that lower interest rates would ultimately have a positive impact on the stock market as the economy is resilient and productivity growth has increased.
“Golden 2020s” on the stock market
Yardeni predicts that a rate cut in 2024 will lead to a “Golden 2020s” in the stock market. He expects the S&P 500 index to rise to 5,400 points by the end of 2024 and up to 6,000 points by the end of 2025. This would represent an increase of 13.095 percent and 25.66 percent respectively.
AI trend continues to drive positive development
The analyst also emphasizes the positive impact of the artificial intelligence trend on the stock markets. The launch of ChatGPT, an AI chatbot, has already sparked a price rally, and Yardeni expects AI tools to increase productivity and reduce costs in the future.
Overall, these signs suggest that lower interest rates and the artificial intelligence trend could have a positive impact on the stock market. This could lead to an increase in the S&P 500 Index and favorable developments in the financial sector.
Read the source article at www.finanzen.at