Economics/Class Relations

What the Fed rate cut means for investors

Saturday, Sept. 21, 2024

Alicia Adamczyk

Senior Writer

After more than a year of will-they-or-won’t-they, the Federal Reserve announced a 50-basis-point cut to its benchmark federal funds rate this week, the first since the early days of the COVID-19 pandemic and likely the first of multiple cuts through the end of the year.

The stock market soared after the news, with the more-aggressive-than-anticipated reduction signaling the Fed believes the economy is on solid footing. For the average investor, this could signal an important opportunity: Wealth planners and other financial experts tell Fortune there are a number of ways to take advantage of falling rates in the coming months.

A variety of equities, bonds, and corporate real estate are some of the assets the experts highlighted; rebalancing could also be a good move after two great years for the stock market that may have sent portfolios out of whack.

Above all, it’s important for investors to remember that nothing the market does should prompt a complete change in their strategy, says Doug Ornstein, director of TIAA’s wealth management team. Investors should already have a well-diversified portfolio that aligns with their goals, and they should stay the course regardless of what the Fed plans for the rest of the year. Read more here.

What the Fed rate cut means for investors

Sept. 19, 2024
 

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