401(k) savers told that riding out the bumps on Wall Street often is the best way to go

Susan Tompor | Detroit Free Press | August 8th, 2024

“Overall things will likely continue to be volatile until there is more clarity as to what the Fed might do on September 18th,” said Sam Huszczo, a chartered financial analyst in Southfield.

“And remember, the markets will likely react before the meeting itself due to speculation.”

The first rate cut is a move that would be viewed as a boost for the economy. The Fed raised rates 11 times since March 2022 to fight skyrocketing inflation after the pandemic. The last Fed rate hike was in July 2023.

The Federal Reserve kept the short-term federal funds rates at its range of 5.25% to 5.5% after its last meeting in July, a range it has been at for the past year even as inflation has cooled off.

The Fed’s next scheduled meeting is Sept. 17 and Sept. 18. Many had already expected a small rate cut in September, but some wonder if the rate cut could be larger then.