In the ever-evolving world of finance, it's crucial to stay in tune with the latest developments. But that can be dry and hard to swallow. We find a humming a tune can take the scary out. And as Beyonce is visiting NOLA this week, we're sharing our latest market update with some Queen B honey (ahem) sugar to help the medicine go down.
Ready for all you need to know about yesterday's Fed meeting? Why isn't it likely great long-term news for your real estate plans?
We're here to help you understand while maintaining your confidence. Ready to do so with the cozy-ness of a Beyonce motivational anthem? We've got you. Let's do this!
Check on it
Just after the Federal Open Market Committee (FOMC) concluded its meeting yesterday, they threw in a plot twist. At the meeting, they voted unanimously to leave the benchmark rate unchanged – as expected – in the target range of 5.25%-5.5%. Yaas!
Rates to keep jumpin' jumpin'
But now for that twist in the plot that's got everyone shaking like they should have put a ring on it. The Fed is now forecasting considerably higher rates over 2024 and 2025 due to a resilient U.S. economy, a robust labor market, and persistent inflation – talk about a surprise encore! 🕺💃
According to Bloomberg.com, the "dot plot" of rate projections reveals that policymakers still foresee one more hike this year. (we're planning on a November hike). But what's making headlines is the fact that 2024 and 2025 rate projections each rose by a half-percentage point.
This signals the Fed's expectation that rates will stay higher for a more extended period. Less yaas.
The countdown
As the curtain rises on the remaining two 2023 meetings, there's quite a debate in the wings just off-stage. Twelve of 19 policymakers on the FOMC expect one more rate hike this year, while the remaining seven favor holding rates steady. Jerome Powell, the Fed diva who 'runs this motha',' emphasizes that decisions will hinge on incoming data.
According to Bloomberg.com, Powell's tone during this performance seems to strike a more balanced chord. He emphasizes the FOMC's goal of a soft landing, minimizing damage to the labor market. Still, he acknowledges the uncertainty that shrouds this outcome.
Then get back to business
The committee has raised its projections for growth and anticipates a better-than-expected labor market, with the jobless rate peaking at 4.1% rather than 4.5%. While the dot plot hints at a hawkish stance, Powell's cautionary notes remind us of the inherent unpredictability in financial markets.
As the news reverberates through the financial world stronger than a performance of "Halo," Treasury two-year yields have climbed to the highest levels since 2006. Stocks have reacted with a retreat, with the S&P 500 pushing lower and the tech-heavy Nasdaq 100 taking a hit. The dollar, true to its unpredictable nature, has been fluctuating, and oil has followed suit, stepping back after a recent rally that sent Brent to $95 a barrel earlier this week.
Alien Superstars
In the midst of these financial theatrics and market dynamics, Team Cool Murphy remains, "in formation." And our clients who trust our process, and who are open to navigating the nuances of the market together, are uncovering hidden gems and securing advantageous deals.
We understand that getting "comfortable in your skin," in any market, especially during times of rate fluctuations, is essential. Our real estate expertise and our unwavering commitment to keeping you informed ensure that you can navigate these financial waters confidently.
So, while the financial world may be humming a new tune, rest assured that Team Cool Murphy is here to help keep you informed and in the right mindset as you find your next place. As Beyoncé would say, "Confident, damn, we're lethal."
Voted Neighborhood Favorite by Nextdoor, Team Cool Murphy is a top-producing, licensed real estate team based in New Orleans, brokered by Cool Murphy, LLC.
Celebrated for her next-level creative approach to real estate, Elisa Cool Murphy is an award-winning, top-performing agent in New Orleans and the founder and leader of Cool Murphy, LLC.
Contact Her -
email: cool@coolmurphy.com
Facebook: @homeinneworleans
IG: @coolmurphynola
YouTube: @coolmurphynola
phone: 504-321-3194
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