ilmscore | THE FED JUST BAILED | Major Changes Explained

THE FED JUST BAILED | Major Changes Explained

Predictions from this Video

Total: 9
Correct: 0
Incorrect: 0
Pending: 9
Unrated: 0
Prediction
Topic
Status
Federal Reserve projects interest rates to reach 0.9% by end of 2022, 1.6% by end of 2023, and 2.1% by end of 2024.
"their expectation is that interest rates are going to be 0.9 percent at the end of 2022 1.6 percent at the end of 2023 and 2.1 percent at the end of 2024."
Federal Reserve Interest Rates
Pending
Majority of Federal Reserve officials are expected to enact three interest rate hikes in 2022 and another three in 2023.
"from there it appears that the majority of the FED expects will see three rate hikes throughout the rest of the year and another three rate hikes throughout 2023"
Federal Reserve Interest Rate Hikes
Pending
The first interest rate hike is predicted to occur in April 2022.
"meaning most likely the first rate increase we could see is in April of 2022."
First Interest Rate Hike
Pending
Federal Reserve anticipates inflation to decrease to 2.6% by end of 2022, 2.3% in 2023, and 2.1% in 2024.
"the Federal Reserve expects inflation to begin to settle down throughout next year and end off 2022 with a 2.6 inflation rate down from the 6.8 percent where it is today after that they hope to see a 2.3 inflation in 2023 and finally 2.1 inflation in 2024."
Inflation Rate Projection
Pending
Historically, the S&P 500 is likely to move within +/- 5% the month following an interest rate increase, despite lower average monthly returns.
"the simplywise blog found that since 1954 even though the S P 500 monthly returns are three times lower during a rising interest rate environment the most likely outcome during an interest rate increase is an S P 500 that moves plus or minus five percent that following month"
Stock Market Performance during Rising Interest Rates
Pending
Since 1971, the S&P 500 has averaged a 20% gain during periods of rising interest rates, which can last for several years.
"the financial Samurai also found that the S P 500 has on average gained 20 percent in a rising interest rate period since 1971. which can often span over several years"
Stock Market Performance during Rising Interest Rates (Long-term)
Pending
As interest rates rise, growth and tech sectors may see a rotation, while banking, industrials, and semiconductors are expected to outperform due to their association with an improving economy.
"Rising rates can lead to a rotation away from growth and Tech but other Industries like banking Industrials and semiconductors tend to outperform as rising rates go together with an improving economy"
Sector Performance during Rising Interest Rates
Pending
A 1% increase in interest rates is projected to reduce a homebuyer's purchasing power by 11%.
"a one percent increase in rates reduces your purchasing power by 11"
Real Estate Affordability Impact
Pending
Limited inventory and increasing construction costs are expected to keep real estate prices elevated, even with rising interest rates.
"limited inventory and Rising construction costs could very well keep prices elevated for quite some time even if and when interest rates increase"
Home Price Stability despite Rising Interest Rates
Pending