Categories: General Market Commentary- DPC
Topics: General Market Commentary- DPC

Fed Rate Fallout and Reactions

Since last week: 

The predicted rate hike pause became a reality, and that has rippled out. 

1. A Pause, For Now    

The big news this week was that the Federal Reserve paused rate hikes, stopping a campaign of raises that lasted just over a year. Inflation is cooling, so now it’s time to see just how this all plays out. The Fed still left room for more raises in the months to come, so all is not clear just yet. In the meantime, there are ways to invest to take advantage of the environment this has created.  

2. Gold’s Reaction

With the announcement of the rate hike pause, gold saw a dip in its value. Traders decided to take their capital elsewhere, so gold’s bullish momentum hit a stumbling block. If nothing else, that creates a powerful buying opportunity that you should be looking into. 

3. Crypto’s Reaction

Cryptocurrency reacted much the same. While prices for many coins were already battered thanks to the ongoing litigation against Coinbase and Binance, prices slid further with the announcement of the pause. Like gold, this could be an opportunity to buy at a discount as long as you do it correctly.  

4. Ford’s Factory 

Ford is intent on carving out its place in the EV market. As shown by its recent announcement, its assembly plant in Cologne, Germany, the Cologne Electric Vehicle Center, is now in operation. It is a carbon-neutral plant and is home of the company’s next-gen electric vehicles for European markets. This falls in place with the company’s recent deals with lithium battery makers, and shows just why investing in lithium is something every investor should be doing in the near future.  

What to Look For:

The market has been on something of a winning streak since the Fed announcement, so next week will show whether or not it can maintain that momentum.

Ryan Stancil
Editor, Daily Profit Cycle