Market Memo
December 2023 – By Bob Veres
Most of the investing world is a bit weird about the Federal Open Market Committee meetings, which is where the nation’s central bank announces its latest interest rate policy. The announcement concerns the overnight borrowing rate for banks that need short-term financing if they run (temporarily) short on liquidity. The idea is that if the Fed raises or lowers this rate, then interest rates throughout the economy will bounce up or down accordingly, raising or lowering the cost of financing for America’s corporations and potentially leading to recession (and lower stock prices) or economic prosperity (and higher stock prices).
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