Business Innovators Radio - Episode #57 – Fed Predicts Three Rate Cuts in 2024 – The 15 Minute Financial Feast Podcast-With Mark Triplett & Troy Westendorf

Episode Date: January 17, 2024

We believe that every dollar has a purpose and a timeline. When and how your retirement assets will be used should be understood before making important financial decisions.The Triplett-Westendorf Purpose and Timeline 5 Step Planning Process (PT5) begins with Discovery.Understanding where you are now, and then defining where you want to go (Your Purpose) and when you want to get there (Your Timeline), programs your financial GPS. Our Purpose and Timeline 5-step process (PT5) programs your financial GPS.Learn more: http://triplett-westendorf.com/ | https://mypt5.com/The 15 Minute Financial Feast Podcasthttps://businessinnovatorsradio.com/the-15-minute-financial-feast-podcast/Source: https://businessinnovatorsradio.com/episode-57-fed-predicts-three-rate-cuts-in-2024-the-15-minute-financial-feast-podcast-with-mark-triplett-troy-westendorf

Welcome to the 15-minute financial feast podcast, bringing you 15-minute segments to help you retire with purpose on time. We're serving up food for thought and bread for the head. Are you hungry to learn? Here are your hosts, Mark Triplett and Troy Westendorf. Welcome to another episode of the 15-minute financial feast. Today, you are listening to the audio from a live television interview where one of our favorite local news station anchors asked us questions about a financial topic on the minds of many hardworking folks in our community who are trying to make good decisions and get ahead. With inflation trending in the right direction, interest rates could start decreasing in 2024. Mark Triplett from Triplett-Westendorf is here to discuss

the Fed's latest decisions. So why did the Federal Reserve keep rates steady? Well, Samantha, the Federal Reserve is walking a really fine line between trying to slow the economy down and pushing us into a recession. Last year, prices rose. as high as 9% year over year. But as of November, the inflation numbers are showing that the inflation year over years come down to about 3.1%. So we're headed in the right direction. Unemployment is dropping, but the job market seems to be slowing down. So those are all good signs and indications that the Federal Reserve's interest rate hikes are being effective. And then how likely does a recession seem at this point?

You know, recession, there's no secret that interest rates, the hikes last year are putting pressure on the economy and everybody's affected. From home buyers to those with credit card debt, even banks and corporations. I mean, the average APR this last year has been high as 27%. So that makes borrowing costs much, much more difficult. That slows the economy down. As far as a recession goes, it's really impossible to predict when a recession might. happen. But we keep an eye on the CPI reports and job reports because those are all good indicators of where the economy is headed. Regardless of whether we're going to be in a recession or not,

it's important. And this is a great reminder to have a financial plan that helps you during these uncertain times. Absolutely. And with that, what can consumers do to protect their money as we wait for inflation and interest rates to go down? Game plan here. Well, we would recommend taking advantage of the higher interest rates right now, maximizing your savings. If you don't have, If you're not taking advantage of online high-yield savings accounts, which are paying some of them over 4.3%, that's really a missed opportunity. And be prepared for stock market volatility. Try to decrease your exposure to short-term market risk.

Money that you need to spend in the near-term probably shouldn't be sitting in the market. We always encourage our investors to be long-term investors as opposed to short-term investors to avoid having to sell during a downturn. And last, just create that long-term financial plan. It gives you a set of guardrails to help you through these uncertain times. What are some of the positive signs that you have seen that's like elevated federal interest rates? What are some good things that happened this year moving forward into 2024? So those that have money that was sitting on this island, we're sitting in bank accounts,

they're able to earn an interest rate for the first time in nearly two decades that are really worth having. I mean, the inflation has come down, but we're seeing those interest rates still elevated. And that's helping out those savers, people that actually had cash on hand. The markets kind of bounce back too. We're seeing now the signs of the inflation have impacted, slowing the economy down. But the market is responding now positively to the jobs reports and CPI data. And so November was an excellent month for the stock market. And those who had the resolve to stay invested and didn't sell out during those ugly months of September and October.

You've been listening to the 15-minute financial phase podcast. Remember, every dollar has a purpose and every dollar has. as a timeline. If you have questions about today's topic, schedule a call with a team member. Visit www.mip5.com. Until next time, be sure you're taking steps to retire with purpose on time. Mark Triplett is an investment advisor representative of and advisory services offered through Royal Fund Management LLC, an SEC registered investment advisor. Nothing contained in this program should be considered an offer to buy or sell securities. Different investments have different risks associated with them and not all investments are appropriate for all investors.