Fed plans rate cuts, but economists are concerned. What's happening? (Sep 2024 - Novanews)
With summer behind us and fall just beginning, it's time for our monthly update on the latest economic news. This month, we're also celebrating the remarkable influence of Hispanic culture in the U.S.
HOT NEWS
Mortgage rates are going down for the fourth week in a row, but the demand isn’t growing.
The U.S. economy showed unpredictable growth in the second quarter of the year, but economists are worried about dollar stability.
Turkey has officially requested to join the BRICS group.
TODAY'S TOPICS
With inflation under control, the Federal Reserve is expected to begin easing monetary policy.
Austin, TX, and Kansas City, MO, are the hottest U.S. housing markets.
More Americans are swapping traditional investments for sports betting, especially as some states make it legal.
Many familiar elements of American culture have Hispanic origins.
Vistra Corp. continues to be one of the best-performing stocks throughout the year.
QUIZ
1. What year was Hispanic Heritage Month first officially recognized in the United States?
1968
1970
1988
1992
2. Which country is recognized as having the largest Hispanic population, celebrated during Hispanic Heritage Month?
Mexico
Puerto Rico
Cuba
España
3. Which U.S. President expanded Hispanic Heritage Week to a full month?
Lyndon B. Johnson
Richard Nixon
Ronald Reagan
George H. W. Bush
REAL ESTATE
Current mortgage rates
30-year – 6.43%
20-year – 6.27%
15-year – 5.95%
10-year – 5.93%
Real estate news
Mortgage rates are going down for the fourth week in a row, but the demand isn’t growing. Mortgage rates have been trending downward for the last four weeks of summer, but this hasn’t significantly influenced current homeowners or prospective buyers. Learn more
Austin, TX, and Kansas City, MO, are currently the hottest U.S. housing markets. They’re driven by a mix of job growth, affordability, and a solid supply of homes. Despite the broader economic challenges, these cities show strong demand and favorable conditions for buyers and sellers alike. Learn more
U.S. ECONOMY
Inflation
Current US inflation rate: 2.9%
Unemployment
Current US unemployment rate: 4.3%
FED rate
Fed funds interest rate: 5.33%
U.S. economy news
Fed rate cut looms: quarter-point or half-point? With inflation under control, the Federal Reserve is expected to begin easing monetary policy. The market is eagerly anticipating the central bank's decision at the September meeting: Will it be a traditional quarter-point rate cut or a more aggressive half-point reduction? Learn more
The U.S. economy grew by 3% in the second quarter of 2024. This has exceeded the expectations of many economists who had predicted a slower pace. This growth indicates that the economy is not in a recession, and there's no immediate threat of the business cycle ending soon. Learn more
Economists are concerned about real inflation and the stability of the U.S. dollar. The issue lies in the U.S. dollar index (the value of the greenback relative to foreign currencies), which is decreasing. This decline could potentially lead to currency depreciation, contributing to domestic inflation by increasing the cost of foreign goods and services. Learn more
GLOBAL OUTLOOK
Turkey has officially requested to join the BRICS group. This is a part of the country’s effort to strengthen its influence and build new alliances, this time beyond the West. Turkish political leaders recognize that geopolitical power no longer fully belongs to the developed countries. Learn more
ECB policymakers are divided on rate cuts. The European Central Bank is facing growing internal disagreement over the economic outlook. Some policymakers fear recessions, while others are concerned about inflation pressures. Learn more
STOCK EXCHANGE
Stocks recommended by experts
3 top best-performing S&P 500 stocks in September 2024 based on one-year results:
Stock market news
Stocks rise to close a strong month, with 76% of S&P 500 stocks gaining. Stocks on Wall Street enjoyed their fourth consecutive winning month, posting solid gains. The S&P 500 rose 1%, with 76% of its stocks gaining. Learn more
The surge in online sports betting is negatively impacting how people invest. Researchers studied 230,171 households in states with legalized gambling and found that 7.7% of them placed online sports bets, spending an average of $1,100 per year. Unsurprisingly – but sadly – those who bet on sports have less money to invest, especially in the stock market. Learn more
COFFEE BREAK
Fun facts
3 cool facts about Hispanic Heritage Month
Hispanic Heritage Month starts on September 15, celebrating the independence days of several Latin American countries.
Many aspects of American culture, like cowboy hats, rodeos, and even the word "barbecue," have Hispanic roots.
The dollar sign is thought to be connected to the Spanish currency used in the early American colonies.
Fun news
One-in-30-million star of the supermarket aisle. An ultra-rare orange lobster, nicknamed Clementine, was spotted in a Long Island supermarket, standing out among the usual brown lobsters. With only one in 30 million lobsters naturally orange, Clementine quickly became the star of the seafood aisle before being returned to the sea, where she eagerly swam back to her natural habitat. Learn more
Investor of the month
Reid Hoffman
A tech titan and entrepreneur, Reid Hoffman has been a driving force behind some of the biggest names in consumer technology. From LinkedIn and PayPal to Facebook and Airbnb, his investments and guidance have helped shape the digital landscape as we know and dwell in it.
He’s known for his ability to see the next big thing long before it shows up. His deep understanding of consumer behavior and his knack for scaling businesses at lightning speed have made him a go-to advisor for entrepreneurs and investors alike.
QUIZ ANSWERS
1968
Mexico
Ronald Reagan
CONTENT YOU CAN’T MISS
This month’s recommended book
The Value of Everything: Making and Taking in the Global Economy by Mariana Mazzucato
The main idea of this book is how to save the economy from another crisis by reshaping capitalism. Mazzucato argues that many people and companies are pretending to create value when they’re really just shuffling money around. She draws on examples from Silicon Valley, finance, and big pharma to show how this confusion leads to problems.
The best states to invest in real estate
It’s every investor’s dream to buy a property that appreciates in value quickly. But the real question is what are the best states to invest in real estate, and why?
How I purchased 17 properties while working a full-time job
Ever wondered how people combine investing with their full-time jobs? If you still think it’s impossible, this video is for you.
