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What The Fed Rate Cut Means For Mortgage Rates And Money Market Funds

1. The Fed cut interest rates by 0.25%, beginning a series of reductions. 2. Predictions suggest rates will decline below 3% by the end of 2026. 3. Lower rates may boost borrowing but reduce investment income for households. 4. Mortgage rates are expected to drop, encouraging refinancing and real estate activity. 5. The market views declining rates as positive for equities and risk assets.

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FAQ

Why Bullish?

Historical rate cuts often boost equity markets, positively influencing S&P 500 performance.

How important is it?

Lower interest rates historically correlate with higher stock values, affecting overall market dollar flows.

Why Long Term?

While immediate effects may emerge, sustained equity growth typically follows a reduced rate environment.

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