Yesterday the Fed raised interest rates by 0.25% after their July FOMC meeting and the overnight rate is now 5.25-5.5%. It was pretty much expected. The July statement is almost identical to the June statement except for the following. The language in the statement changed from
In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 5 to 5-1/4 percent. Holding the target range steady at this meeting allows the Committee to assess additional information and its implications for monetary policy.
to
In support of these goals, the Committee decided to raise the target range for the federal funds rate to 5-1/4 to 5-1/2 percent. The Committee will continue to assess additional information and its implications for monetary policy.
It’s unclear if there will be more hikes but it does sound like the rate will stay high for a while from JPow’s press conference. People keep saying there will be a soft landing but I don’t know. At the beginning of the year, people said the stock markets would bottom out in Q1 but it turns out it bottomed last year. So I feel these predictions are useless. Anything could happen and I don’t think people should make investment decisions based on these predictions. I stick with index funds primarily. My play portfolio is still 50% cash and 50% high growth and it works great so far YTD with a ~20% gain but I really have no idea what things are gonna happen for the rest of 2023.