{"id":13344,"date":"2024-08-21T16:12:09","date_gmt":"2024-08-21T16:12:09","guid":{"rendered":"https:\/\/zacksim.com\/blog\/?p=13344"},"modified":"2024-08-21T16:12:10","modified_gmt":"2024-08-21T16:12:10","slug":"whats-ahead-for-inflation-and-interest-rates","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/whats-ahead-for-inflation-and-interest-rates\/","title":{"rendered":"What&#8217;s Ahead For Inflation And Interest Rates?"},"content":{"rendered":"\n<p><em>Nella P. from Carlsbad, NM asks: <\/em>Hello Mitch, do you think the latest inflation report seals the deal for interest rates to come down in the next year? I\u2019ve had a long-time goal of buying a second home, but missed my window when interest rates were low. Thank you.<\/p>\n\n\n\n<p><strong>Mitch\u2019s Response:<\/strong><\/p>\n\n\n\n<p>It sounds like you\u2019ve done a lot of planning over the years and are close to reaping the rewards.<\/p>\n\n\n\n<p>The July inflation report did indeed factor as a positive for the interest rate outlook. The Labor Department reported that the consumer price index (CPI) measure of inflation rose 2.9% year-over-year, which marked the lowest reading since 2021. Core prices, which exclude volatile food and energy categories, were up 3.2% \u2013 also a three-year low.<sup>1<\/sup><\/p>\n\n\n\n<p>Markets and the Federal Reserve were encouraged by this inflation print, as it essentially confirmed inflation resuming its downward trend following a hiccup in the first quarter. But there were still some sticking points. The cost of housing, for instance, accelerated slightly from June and remains a category that\u2019s stubbornly keeping headline inflation elevated. Housing costs account for roughly one-third of the CPI.<\/p>\n\n\n\n<p><strong><u><a href=\"https:\/\/go.steadyinvestor.com\/8-steps-to-stress-free-retirement?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_08_22&amp;content=8_steps_to_stress_free_retirement\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/8-steps-to-stress-free-retirement?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_08_22&amp;content=8_steps_to_stress_free_retirement\">How to Enjoy Your Stress-Free Retirement in This Economy<\/a><\/u><\/strong><\/p>\n\n\n\n<p>Are you concerned about whether your retirement savings are sufficient to ensure a comfortable, stress-free future? You&#8217;re not alone. Many Americans are facing the same challenge, especially in today\u2019s volatile market with fluctuating interest rates. Now is the time to take control of your financial future.<\/p>\n\n\n\n<p>Our guide,\u00a0<em><strong><u><a href=\"https:\/\/go.steadyinvestor.com\/8-steps-to-stress-free-retirement?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_08_22&amp;content=8_steps_to_stress_free_retirement\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/8-steps-to-stress-free-retirement?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_08_22&amp;content=8_steps_to_stress_free_retirement\">8 Steps Towards a Stress-Free Retirement<sup>\u00a02<\/sup><\/a><\/u><\/strong><\/em>, gives you a roadmap\u2014whether you\u2019re just getting started or you\u2019re well on your way. You\u2019ll get essential information including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The \u201cmagic number\u201d every retirement investor needs to know<\/li>\n\n\n\n<li>How to plan for emergencies that can derail your retirement investments<\/li>\n\n\n\n<li>Why missing just 25 trading days can decimate your returns<\/li>\n\n\n\n<li>Three ways to generate income during retirement<\/li>\n\n\n\n<li><strong>Plus, other key steps to help you realize your retirement goals<\/strong><\/li>\n<\/ul>\n\n\n\n<p>If you have $500,000 or more to invest,\u00a0<strong>download our\u00a0<\/strong><em><strong><a href=\"https:\/\/go.steadyinvestor.com\/8-steps-to-stress-free-retirement?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_08_22&amp;content=8_steps_to_stress_free_retirement\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/8-steps-to-stress-free-retirement?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_08_22&amp;content=8_steps_to_stress_free_retirement\"><u>8 Steps Towards a Stress-Free Retirement<\/u><\/a><\/strong><\/em><strong><u><a href=\"https:\/\/go.steadyinvestor.com\/8-steps-to-stress-free-retirement?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_08_22&amp;content=8_steps_to_stress_free_retirement\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/8-steps-to-stress-free-retirement?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_08_22&amp;content=8_steps_to_stress_free_retirement\">.<sup>\u00a02<\/sup><\/a><\/u><\/strong><\/p>\n\n\n\n<p>Even still, I think this inflation report \u2013 coupled with the unemployment rate rising from 3.7% at the beginning of the year to 4.3% in July \u2013 have moved enough Federal Reserve officials into the camp of cutting rates at the September meeting. Between now and then, we\u2019ll have the August jobs report, the Fed\u2019s preferred inflation gauge (PCE price index) for July, and one more CPI print. Any further moderation of job gains and inflation in these reports will almost certainly prompt the Fed to cut.<\/p>\n\n\n\n<p>As for your question about being in a more advantageous position as the Fed cuts rates, I do not want to get your hopes too high. The benchmark fed funds rate does indeed impact mortgage rates, but there\u2019s a good argument that the market has already priced in a September rate cut into current 30-year fixed mortgage rates. So, I would not expect mortgage rates to decline all that much if the Fed cuts rates by 25 basis points, for instance.<\/p>\n\n\n\n<p>What you should watch for, however, is whether a rate cut in September comes as a unanimous decision, and what officials stay about expectations for rate decisions at the final two meetings of the year, in November and December. If the Federal Reserve emerges from the September meeting with a dovish tone, and we also see softer inflation readings into the fall with more of a weakening pattern in the labor markets, then I think you will see a more significant impact on mortgage rates.<\/p>\n\n\n\n<p>I recommend careful planning and strategy, especially for investors working toward or already in retirement, to provide a buffer against market volatility and maintain long-term financial stability.<\/p>\n\n\n\n<p>Our free guide, <strong><em><u><a href=\"https:\/\/go.steadyinvestor.com\/8-steps-to-stress-free-retirement?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_08_22&amp;content=8_steps_to_stress_free_retirement\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/8-steps-to-stress-free-retirement?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_08_22&amp;content=8_steps_to_stress_free_retirement\">8 Steps Towards a Stress-Free Retirement<\/a><\/u><\/em><u><sup><a href=\"https:\/\/go.steadyinvestor.com\/8-steps-to-stress-free-retirement?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_08_22&amp;content=8_steps_to_stress_free_retirement\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/8-steps-to-stress-free-retirement?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_08_22&amp;content=8_steps_to_stress_free_retirement\">3<\/a><\/sup><\/u><\/strong>, will help you do just that. This guide provides insight into:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The \u201cmagic number\u201d every retirement investor needs to know<\/li>\n\n\n\n<li>How to plan for emergencies that can derail your retirement investments<\/li>\n\n\n\n<li>Why missing just 25 trading days can decimate your returns<\/li>\n\n\n\n<li>Three ways to generate income during retirement<\/li>\n\n\n\n<li>Plus, other key steps to help you realize your retirement goals<\/li>\n<\/ul>\n\n\n\n<p>If you have $500,000 or more to invest, click on the link below to get your free copy today!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mitch looks at encouraging inflation trends and the possibility of a Fed rate cut in September\u2014and in the following months. <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[66,71],"tags":[],"class_list":["post-13344","post","type-post","status-publish","format-standard","hentry","category-mitchs-mailbox","category-private-client-group"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/13344","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/comments?post=13344"}],"version-history":[{"count":2,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/13344\/revisions"}],"predecessor-version":[{"id":13346,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/13344\/revisions\/13346"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=13344"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=13344"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=13344"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}