Part 3/9:
In light of the rising inflation figures, the Federal Reserve indicated a shift in its strategy, opting for a more conservative approach regarding interest rate adjustments. Instead of the aggressive rate cuts that many investors had anticipated for 2025, the Fed now signals only two potential reductions. For Wall Street, this news is unsettling; the prospect of limited access to inexpensive debt raises concerns about how it will affect stock values. Investors had hoped that more lenient interest rates would generate a more fertile ground for investment and re-injection of capital into the market. The Fed’s hesitance, stemming from inflation fears, has triggered doubts among investors about the sustainability of stock prices.