A .50 basis point interest reduction across two rate cuts is expected in 2025, reports Morningstar 6/26/2025. Further, the article goes on to project a .75 point reduction in 2026, followed by another .75 point reduction in 2027. Nevertheless, Goldman Sachs on 7/1/2025 has now issued a forecast for three .25 point interest reductions in 2025. What we can confidently conclude, is that we appear to be entering a period of time where rates will be dropping.
Therefore…
If one looks at the ‘last 14 rate reductions since 1929,’ says Charles Schwab 8/16/2024, 12 of the periods experienced positive returns, which is an amazing 86% of the time.
It seems to be looking….
Better than Worser!!!
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Russell E. Towne, LPL Financial Advisor, is a registered representative with and Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC.
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