Posted 2/21/2024, 10:50:48 PM
Fed Signals Higher Tolerance for Inflation, Potential Rate Cuts to Spur Growth
- Fed will be comfortable with inflation in the 2-3% range, not concerned unless it hits over 3%
- AI and tech boom still has momentum, though some names like Nvidia may be overvalued
- Broader rally could occur later this year if Fed starts cutting rates by July
- Fed more worried about recession risk than inflation slightly over 2% target
- Good sectors to invest in during economic slowdown staples, industrials, healthcare, quality tech, top-grade bonds, munis, preferred stocks