Lower rates, higher stakes
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A tiny cut in interest rates can mean a great deal in your daily life.
Jerome Powell as the char of the Federal Reserve, and quite arguably one of the man with more power in the world was wearing yesterday a purple tie when announcing that finally he was going to cut interest rates for the first time since December last year.
In the world of investors and shareholders is well known to pay attention to the color of the tie he wears as it gives away a subtle signal about economic policy and sentiment.
okey, and what does it mean?
I am glad you ask but first, is important to note that the tie was not red, or blue or even worst, black.
In this case was purple, a blend of blue and red, stability and change. Often seen as a sign of balance and transition.
This would seem insignificant to the naked eye, but to the expert eye this indicates that the Federal Reserve is taking a balanced approach between stimulating growth and controlling inflation.
And what does it mean for me?
Same as always, for us the working class this only mean one of two things, it gets easier to borrow money devaluating it's value at the same time, or inflation keeps ramping which means our purchasing power decreases.
Either way is not a bad idea to have a plan that doesnβt relay solely on your savings account as we see that anything that happens stack the odds agains us.
if you want to know how to protect yourself besides your savings accounts click here.
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