Navellier Growth: your source for market-beating growth stocks

 

Why wouldn’t the Fed want to cut short-term interest rates? Are there any sectors that could be hurt by a rate cut instead of helped?

The Fed cannot not fight market rates, so they will keep cutting as long as the Federal Funds rate remains substantially above market rates, based on short-term Treasury bills. The Fed’s favorite inflation indicator is the Personal Consumption Expenditure ,PCE, index, and it’s currently within the Fed’s official comfort zone of 1% to 2%. As inflation remains within the Fed’s target range, the Fed will likely keep cutting interest rates. There really are no industries that are hurt by a Fed cut, since it helps bolster economic activity, which is good for all sectors.

Q&A Archive

• Q&A on Investing the Navellier Growth Way
• Q&A on Today's Market
• Q&A on Specific Stocks