In the wake of the United States Federal Reserve's decision to halt rate hikes for the final decision of this year, Wall Street and many Americans are breathing a sigh of relief. For almost two years, the financial market endured aggressive rate hikes intended to avert a recession. Unfortunately, the possibility that the economy could fully dodge the downturn is uncertain, as Federal Reserve chair Jerome Powell, suggests it is too soon to declare victory.
Nonetheless, it appears we are steering in a promising direction. Wall Street was clearly appeased by the Fed's recent decision. Not only was there a pause in rates, but the prospects of three interest rate cuts in 2024 have led to robust optimism. Consequently, the optimism led the Dow to close at a record high, surpassing its momentum from two years ago.
