Federal Reserve Signals Rate Cut in June

Federal Reserve Chair Jerome Powell hinted at a June rate cut during yesterday's press conference. Inflation has fallen to 2.1%, nearing the Fed's 2% target for the first time since 2021.

Market Reaction

• S&P 500 up 2.3% on the news
• Tech stocks rally (NASDAQ +3.1%)
• Mortgage rates drop to 5.8%
• Gold hits new all-time high

Economists expect two more rate cuts before the end of 2025. This is good news for borrowers and the housing market.