BREAKING: Federal Reserve Announces Upcoming Rate Cut! (Major Changes Explained)
Published: 2024-07-31
Status:
Available
|
Analyzed
Published: 2024-07-31
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Market anticipates the first Federal Reserve rate cut in September.
"the market believes that we could see the First Rate cut as early as September"
Pending
Inflationary price increases are slowing down.
"prices are beginning to come back down or at least not go go up with such quick velocity"
Pending
Consumer prices decreased in June, the first such drop since the pandemic began.
"prices in June fell for the first time since the start of the pandemic"
Pending
A sustained decrease in inflation could lead to significant rate cuts.
"higher interest rates could soon be coming to an end and if this continues another few months we could be in the clear for some rather substantial rate Cuts"
Pending
Historically, the S&P 500 has shown positive annualized returns under most US presidents over their terms.
"over the last 100 years only three presidents have ever experienced negative annualized returns of the S&P 500 over their term"
Pending
Presidential election years have historically seen higher stock market returns (11.6% annualized) compared to the overall average (10.3%).
"election years tend to be the most profitable as an example of this over the last 100 years the stock market Market has averaged an annualized 10.3% return but if you isolate presidential election years that jumps to a staggering 11.6% return"
Pending
The stock market shows lower returns (7.4% annualized) during midterm election years compared to non-election years (14.8% annualized).
"investors are actually the most cautious around midterm elections with the market increasing just 7.4% compared to non-election years where the market averages 14.8%"
Pending
Historical stock market returns under Democratic presidents vary significantly based on the composition of Congress.
"a Democratic president achieved an 8.72% return when both the House and Senate were a majority Democrat a 15.72% return with a split Congress and a 14.5% return with a republican Congress"
Pending
Historical stock market returns under Republican presidents also vary significantly based on the composition of Congress.
"Republican presidents received on average an 11.7% return with a republican congress 12.2% with the divided Congress and just 1% with the democrat congress"
Pending
A divided Congress is historically most beneficial for the stock market as it prevents radical policy changes.
"historically a divided Congress is best for the the stock market since that means any radical proposals are probably unlikely to go through"
Pending
The market anticipates the first Federal Reserve interest rate cut to occur in September.
"we could see the First Rate cut as early as September"
Pending
The housing market is transitioning from a seller's to a buyer's market, with significant price gains likely over.
"we're seeing a slow shift from a sell's market to a buyer market supply and demand Dynamics are nearing a balanced Market condition implying that the days of massive price gains are probably behind us"
Pending
Inflation subsiding may lead to substantial interest rate cuts in the coming months.
"higher interest rates could be coming to an end and if this continues another few months we could be in the clear for some rather substantial rate cuts"
Pending
A 25 basis point interest rate cut by the Federal Reserve is projected for September.
"a 25 basis point rate cut this September"
Pending
Renting is currently more affordable than owning a home in all major US metropolitan areas.
"it's cheaper to rent than own in all 50 of the largest US Metras"
Pending
Economic consensus suggests rent control negatively impacts housing quality and availability.
"a sealing on rents reduces the quality and quantity of housing"
Pending
Even with a September rate cut, interest rates will remain relatively high, and significant market changes are not expected soon.
"even after the FED Cuts policy May remain restrictive or in other words even if we get a small rate cut in September rates are still relatively High compared to where they've previously been so don't expect things to get magically cheaper overnight or to see any major changes in the market"
Pending
Studies indicate rent control negatively affects tenant housing prices, contrary to its intended purpose.
"rent control has an adverse effect on housing prices for tenants and does the opposite as is what it's intended for"
Pending
Federal Reserve interest rates are projected to normalize to around 3.1% by 2026, implying a 1.5 to 2-year normalization period.
"this is probably going to be something that'll take another year and a half to 2 years to normalize or at least get to a point where the Federal Reserve rate hovers somewhere around 3.1% which is currently something that they project to happen around 2026"
Pending
Rent control incentivizes tenants to remain in their units, reducing mobility.
"rent control tenants were 20% more likely to stay in their unit renters were more likely to move somewhere else if they didn't have the incentive of keeping their rent capped"
Pending
The housing market is transitioning from a seller's to a buyer's market, with massive price gains likely over.
"the N Chief Economist went on record to say that we're seeing a slow shift from a sell's market to a buyer market supply and demand Dynamics are nearing a balanced Market condition implying that the days of massive price gains are probably behind us"
Pending
Landlords of rent-controlled buildings may convert them, reducing overall housing supply by up to 15%.
"landlords of rent rolled buildings were more likely to convert their buildings in such a way that wasn't rank controlled reducing the amount of housing Supply by 15%"
Pending
Rent control is predicted to negatively impact housing prices for tenants, contrary to its intended purpose.
"rent control has an adverse effect on housing prices for tenants and does the opposite as is what it's intended for"
Pending
Rent control limits the introduction of new housing supply into the market.
"rent control restricts the amount of new housing Supply that's able to come on the market"
Pending
Rent control measures are likely to limit the supply of new housing entering the market.
"rent control restricts the amount of new housing Supply that's able to come on the market"
Pending
Increasing housing supply through builder incentives or relaxed zoning is proposed as the solution to lower rents.
"the only solution for lowering rents is to Simply add more Supply onto the market through tax incentives for Builders to construct more units or less restricted zoning"
Pending
The primary solution for reducing rents is to increase housing supply through builder incentives or relaxed zoning laws.
"the only solution for lowering rents is to Simply add more Supply onto the market through tax incentives for Builders to construct more units or less restricted zoning"
Pending
There is a temptation to cut rates early to achieve a soft landing after a period of restrictive monetary policy.
"there's always going to be the temptation to say well if we really want a soft Landing we could start cutting rates now because we've been in restrictive mode for some time"
Pending
High-income renters have been the main driver of rent growth since 2010.
"high income renters have driven most of the growth in rents since 2010"
Pending
Even with a rate cut, interest rates are expected to remain relatively high compared to historical levels.
"even after the FED Cuts policy May remain restrictive or in other words even if we get a small rate cut in September rates are still relatively High compared to where they've previously been"
Pending
Presidential election years have historically been the most profitable for the stock market, with an average annualized return of 11.6% over the last century.
"election years tend to be the most profitable as an example of this over the last 100 years the stock market Market has averaged an annualized 10.3% return but if you isolate presidential election years that jumps to a staggering 11.6% return"
Pending
All current economic indicators suggest a 25 basis point rate cut by the Federal Reserve in September.
"it does appear as though all indicators are pointing to a 25 basis point rate cut this September"
Pending
Despite potential rate cuts, interest rates are predicted to remain elevated for an extended period due to the Fed's cautious approach.
"even if we do see a rate cut they're going to take it extremely slow only cut when they're 100% certain that it's the right time and that most likely means we're going to see higher interest rates for longer than people expect"
Pending
Midterm election years are associated with lower stock market returns (7.4%) compared to non-election years (14.8%) due to investor caution.
"investors are actually the most cautious around midterm elections with the market increasing just 7.4% compared to non-election years where the market averages 14.8%"
Pending
Interest rates are projected to normalize to around 3.1% in approximately 1.5 to 2 years.
"this is probably going to be something that'll take another year and a half to 2 years to normalize or at least get to a point where the Federal Reserve rate hovers somewhere around 3.1%"
Pending
A divided Congress is historically beneficial for the stock market, as it prevents radical proposals and ensures more predictable economic conditions. The composition of the House and Senate has a greater impact on stock market returns than the president.
"historically a divided Congress is best for the the stock market since that means any radical proposals are probably unlikely to go through it's going to be more of the same and if you're concerned about stock market returns it's a lot more opportunistic to look at the house and the Senate because they have way more control than the president"
Pending
The Federal Reserve projects its rate to hover around 3.1% by 2026.
"the Federal Reserve rate hovers somewhere around 3.1% which is currently something that they project to happen around 2026"
Pending
Republican presidents historically achieved higher stock market returns when Congress was also Republican (11.7%) or divided (12.2%), compared to when Congress was Democrat (1%).
"Republican presidents received on average an 11.7% return with a republican congress 12.2% with the divided Congress and just 1% with the democrat congress"
Pending
Since 1957, Democratic presidents have overseen an average stock market return of 99.8%, significantly higher than the 6% average for Republican presidents.
"democratic presidents have seen an average 99.8% return compared to Republicans average 6% return"
Pending
When considering median returns (which accounts for compounding), Republican presidents have a slightly higher average stock market return (10.2%) compared to Democratic presidents (8.9%).
"Republicans have a median 10.2% return compared to Democrats 8.9% return"
Pending