Next week, the Fed will announce its latest rate hike decision. Until last week, nearly every analyst was expecting a rate hike of at least 25 basis points, with some aggressive estimates coming in at 50.
But toss in a bank closure (or two) and mildly promising data from the latest inflation report, and many are beginning to wonder if this could be the last time the Fed raises rates. Some — echoing widely reported comments from a Goldman Sachs economist — are even asking if the Fed will raise the rate at all, citing worries over breaking something in the economy.
To be clear, the Fed is still far from getting inflation into a safe zone of 2%. But they’re making progress. And if the annual inflation rate continues to drop, it’s not hard to imagine the Fed cutting the fund rate by year’s end, especially with the latest pressures on banks.
Lower interest rates will affect market sectors differently. But if you’re looking for good “comeback” stocks in the near future,…
This article was written by Steven Porrello and originally published on www.nerdwallet.com