Rates Will Be Higher For Longer

Jack Bowman9.24K FollowersFollow5ShareSavePlay(10min)CommentsSummaryThe Federal Reserve held rates steady at 3.5-3.75%, signaling a prolonged 'wait and see' stance amid persistent inflation and rising unemployment.The FOMC dot plot reveals a notable internal shift: participants increasingly expect higher long-term policy rates, with some advocating for rates at or above 3.5%.Short-term policy remains moderately restrictive, with most participants projecting at most one rate cut in 2024, likely delayed until September or later.The Fed is preparing markets for a 'higher for longer' rate environment, despite unchanged growth, inflation, and unemployment projections. The tendency is shifting longer despite no movement elsewhere. Kevin Dietsch/Getty Images News The Federal Reserve's Open Market Committee (“FOMC”) held interest rates steady in March, as expected. The current overnight rate of 3.5-3.75% stands. This decision comes amidst a series of “wait and see” decisions that were expected by the market and previously telegraphed byThis article was written byJack Bowman9.24K FollowersFollowWriter | Investment Advisor | Economics Wonk | Top 5% on TipRanks | Long Signal, Short Noise | Author of The Macro Obsession, a weekly newsletter on current events and trends in finance, tech, and the real economy. My work focuses on my quest to uncover narrative trends before mainstream financial media, a process I've been describing as the hunt for information alpha. It is chart-heavy, macro-oriented, and data-driven.I invest across securities and asset classes. My focus has largely been on ETF investing, and I am known as a macro analyst, though I do cover stocks that I am personally trading or considering for my portfolio. These are typically technology and next-gen energy stocks or large caps with a juicy story.“Successful investing requires holding uncomfortably idiosyncratic positions.” — Howard Marks, paraphrasing David Swensen “History does not repeat, it instructs.” — Timothy Snyder, On TyrannyAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.