Part 2/7:
On December 17th, 2023, the Federal Reserve made a significant announcement regarding interest rates, cutting them by 25 basis points, bringing the rates to approximately 4.25% to 4.5%. This marked a total reduction of 100 basis points since September. Interestingly, the Fed anticipates further reductions, potentially down to 3.9% by 2025. This decision sent shockwaves through the broader financial markets, contributing to a staggering $1.5 trillion loss in the US stock market alone.