2024 Q3 Commentary
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Weaker-than-expected employment growth, including downward revisions to job growth earlier this year, and continued moderation in inflation led the Federal Reserve to cut the Federal Funds rate by 50 basis points at their September meeting. Chairman Jerome Powell also indicated that rates would likely move lower again in the remaining two meetings of 2024 and projected four cuts in 2025.
Equity markets generally cheered this news, and hopes have risen that the U.S. economy may actually achieve the always elusive soft landing. The S&P 500 Index reached an all-time high on September 26th, before cooling in the final two trading days of the quarter. The Russell 2000 Index also moved higher over the quarter but remains roughly 10% below its all-time high attained in November 2021.