Part 3/10:
Moving into economic indicators, Jim Pavin analyzed the latest decisions by the Federal Reserve. Recently, they cut interest rates by a quarter of a point, although the number of projected cuts for the following year was notably reduced from four to two. This reduction signals that the Fed may still grapple with persistent inflation challenges.
The immediate response from the financial markets was one of discontent. Historical parallels were drawn, noting how a similar situation in the 1960s and 1970s saw the Fed cutting rates while long-term yields rose, suggesting a potential halt to the existing bull market. The hosts indicated that compared to pre-2020 conditions, the financial landscape has dramatically changed, marked by over $36 trillion in national debt and varying oil prices.