By: Lucinda Mavuso
There is so much optimism in the markets, let’s dive into what’s happening. The Federal Reserve has cut interest rates again by 25 basis points. The Fed is independent of the political climate. The Chair of the Federal Reserve, Jerome Powell posits that “the economy has been expansionary and inflation has eased substantially”.
Jerome Powell says history tells us that the economy cannot be predicted reliably, so markets cannot be timed but the Fed will continue to stabilize inflation to the expected 2% rate. Now that rates are cut, we reflect on how the policies will work with other factors in the economy. Overall employment has been increasing and we hope that this cycle will be ongoing. The next meeting is on December 17-18, 2024 and the economic data will determine the next Fed move.
Stock markets close and tax cuts: The Standard and Poor's 500, Dow Jones, and Nasdaq have hit record highs to the news of Trump returning to the Oval Office. Tesla is now a trillion-dollar company and if you have been holding you’ll have seen a significant return. Investors believe Trump's policy on tax cuts will benefit big corporations, with the current tax plan ending in 2025, do you think your parents, or student taxes will be influenced by this Trump tax cuts promise? Let me know what you think at lucindamavusowtn@gmail.com
(Chair of the Federal Reserve Jerome Powell delivering the Fed Statement in Washington on Thursday, live on CNBC news. Photo Credit: Lucinda Mavuso)
Student loan forgiveness: CNBC news reports that “The U.S. Department of Education’s work to cancel student debt for tens of millions of Americans will likely come to a screeching halt with the election of Donald Trump, who has called the efforts ‘vile’ and ‘not even legal.’” This means Americans with student loans might be expected to start paying their loans. Which has more impact on the middle-class population, leading them to pay their debts instead of saving discretionary incomes. Should Trump cancel the student debt relief? What do you think? I am curious to know your interpretation of that on lucindamavusowtn@gmail.com
Bloomberg For Education: Good news, the City Colleges of Chicago is registered as an academic email domain on Bloomberg for Education Content. Bloomberg is one of the leading financial platforms that gives professors and students access to the Bloomberg terminal. It adds great value to students and has a higher chance of contributing to one's skills and understanding in the finance and business world. If you want to get some lessons on the financial markets you can register at the student rate of $150.
CFA Society Chicago: It’s an advantage to join organizations outside of school. On top of my list is the CFA Society Chicago. Check it out via the link https://www.cfachicago.org/student-membership/ They have wonderful student member resources, like networking, educational events, and other privileges to support your academic and professional endeavors in Finance.
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