The Fed Cut by 25 Basis Points
Cutting or holding the right move?
The Fed has now cut a total of 75 basis points to help the cooling of the labor market. They will be more comfortable holding at the next meeting, depending on whether the unemployment and inflation data are good.
They made the right move to cut. The reasons make sense. Inflation is significantly down from a 2022 high, and risk management cuts are being made to support the labor market. Stocks will go up on this news. 3rd Eye is continuing to pause recurring buys because I mentioned in my last article on how there are other key things to watch and research.
Most, if not all, the press in that room know Chairman Powell is not going to comment directly on any political topics. I’m not going to lie, two of my favorite parts of the meeting were when Andrew Ackerman and another journalist tried to get Chairman Powell to comment on a political matter with the Supreme Court and his legacy. The tone of voice to “no, Andrew” and replies made me shake my head and laugh out loud.
The market is high but not in bubble popping territory. What 3rd Eye is doing is not easy. In this type of environment, it’s good to be aggressive and conservative at the same time.
Amon’Dre Muhammad
Founder, Portfolio Manager & CEO, 3rd Eye Invest
amondre@3rdeyeinvest.com