![]() In theory, that perfect rate exists in the real world. One that isn’t so low that it ushers in inflation, yet not so high that it tips the economy into a recession. In other words, there’s a Goldilocks interest rate out there. The term dates back to 1898 when Swedish economist Knut Wicksell wrote: “There is a certain rate of interest on loans which is neutral in respect to commodity prices and tends neither to raise nor to lower them.” “Neutral” and “natural” rates of interest are often used interchangeably, but they refer to the same concept. But on Wednesday Powell spoke a lot about lesser-known kinds of interest rates: the neutral and natural. Brendan Smialowski/AFP/Getty ImagesĪ lot of people listen to Federal Reserve Chair Jerome Powell for clues about where interest rates will go in the future. The Fed's decided to keep its benchmark lending rate between 5.25 percent and 5.50 percent. The Reserve voted Wednesday to hold interest rates at a 22-year high for the third straight meeting and signaled it expects to make three cuts next year. US Federal Reserve Chairman Jerome Powell holds a press conference at the end of Monetary Policy Committee meeting in Washington, DC, today. “From our vantage point that is about the best holiday gift a central banker can bestow upon the investment community, policymakers and the public,” he wrote. “The major takeaway from the December policy meeting is that the Federal Reserve is forecasting a soft landing, full employment and intends to reduce its federal funds policy rate by at least 75 basis points in 2024 to support the ongoing business expansions,” wrote Joseph Brusuelas, chief economist of account firm RSM, in a note Wednesday. The tech-heavy Nasdaq Composite has soared more than 40% so far this year. The S&P 500 is also about 2% from a record high and is up 22.6% so far in 2023. Wednesday’s stock surge sent the Dow’s year-to-date gains to about 12%. The S&P 500 was up 1.4% and the Nasdaq also gained 1.4% as Wall Street celebrated the US central bank’s announcement that it would keep interest rates steady after almost two years of aggressive rate hikes - and that it expects three rate cuts in 2024. ![]() The Dow rose 1.4%, closing at 37,090.24 and blazing past its previous record high of 36,799.65, reached nearly two years ago. US markets soared higher on Wednesday afternoon following the Federal Reserve’s final policy decision of the year. Learn more about SmarTrip on mobile devices ⇾Ĭustomer comment form or by calling (888) SMARTRIP (88), Monday through Friday, 7 AM - 8 PM EST.Traders react as a screen displays the Fed rate announcement on the floor of the New York Stock Exchange on December 13. Mobile Pay - hold your mobile device above the reader at a rail fare gate, bus fare box, or Metro-owned parking garage target.Learn more about using plastic SmarTrip® cards ⇾ Plastic cards - tap your SmarTrip card to the circular targets on a rail fare gate, bus fare box, or Metro-owned parking garage target.In addition to Metro trains, buses, and garages, SmarTrip is also accepted on ART, DASH, Fairfax Connector, Cue, RideON, TheBus, DC Circulator, Loudon Country Transit, and Potomac and Rappahannock Transit/PRTC.Balance Protection if your plastic card is lost or stolen.Auto Reload and never worry about reloading again.Contactless mobile payments on your smartphone and watch.One payment method for rail, bus, and parking.SmarTrip® is how to pay for fare on all Metrorail stations in DC, Maryland and Virginia, Metro parking garages and lots, Metrobus routes, MTA, and partner regional bus providers.
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