"Look at that, look at that
                                                             Get your money for nothin'
                                                           Easy, easy money for nothin'"

                                                        - Money for Nothing, Dire Straits

At last week's post-Fed meeting press conference, Fed Chairman Jerome Powell gave forward guidance on the future path of the central bank's interest rate policy, messaging seemingly coming directly from the plot of an Orwellian novel or from an '80s British Pub Rock Band.
 
 For those not baptized in the glory of Dire Straits or their song, Money for Nothing, this epic music video is well worth the 4 minutes and 38 seconds to become acquainted. Though, this must also come with a disclaimer: it's not a very P.C. song, and I'd advise that it is #NSFW.

Moving along, the Fed's decision to keep interest rates where they have been since July 2023 was expected, and so, too (by the markets) was the guidance for future interest rate cuts.

And as a consequence, we are being led down the path towards monetary easing (easy money) on the horizon, and hence why "Money for Nothing" has been stuck in my head since last Wednesday.

If they do cut rates with current inflation trends, it would be a monumental mistake, as U.S. and global economic growth is projected to reaccelerate through the end of this year.

We discuss in this episode of The Wealth Effect Podcast:
🦠 Inflation Infecting the U.S. Economy
📉  Fed Fund Futures
📈  Leading economic indicators
🌎 Global economic activity

Show Notes

CONTACT

Matt Faubion, CFP®

Founder - Wealth Manager

Faubion Wealth Management

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