US Federal Reserve leaves key interest rate unchanged - interest rate cuts expected in 2024: positive impact on the stock market

US Federal Reserve leaves key interest rate unchanged - interest rate cuts expected in 2024: positive impact on the stock market

According to a report by www.finanzen.net,

The US Federal Reserve has again left the key interest rate between 5.25 and 5.5 percent and is planning the first interest rate cuts in 2024. This decision is expected to have a positive impact on the stock market. Ed Yardeni of Yardeni Research predicts that a lower interest rate environment will have a positive impact on the stock market.

According to the report, the US Federal Reserve is expected to have stopped tightening monetary policy for the time being. The lower interest rates are intended to boost the stock market. In addition, the AI ​​trend is kept in mind. The US Federal Reserve is sticking to its inflation target of 2 percent, but is already planning interest rate cuts for 2024. Experts expect three possible readjustments.

Ed Yardeni of Yardeni Research sees the US Federal Reserve's decision as positive in moving towards the inflation target and further easing price pressures. He predicts that lower interest rates will ultimately benefit the stock market. As expected, the S&P 500 index could rise to 5,400 points by the end of 2024 and even up to 6,000 points by the end of 2025.

In addition, the AI ​​trend should continue to drive positive development and lead to the “Golden 2020s” on the stock market. According to Yardeni, the introduction of ChatGPT is expected to trigger the current price rally, and future technological innovations, particularly in the area of ​​artificial intelligence, are expected to lead to increased productivity and cost reductions.

The US Federal Reserve's decision to leave the key interest rate on hold and plan future rate cuts can therefore have a positive impact on the stock market, especially in the context of the AI ​​trend and other technological innovations.