Wall Street Woes
Interest rates got their expected trim Wednesday.
Wrapping up its final 2024 meeting, the Fed announced a quarter-point key interest rate cut––the third consecutive cut this year—returning rates to December 2022 levels.
The central bank also signaled a cautious outlook for 2025: expect only two rate reductions. They’re cutting the expected cuts (four were originally anticipated) because they’re now predicting inflation of 2.5% (up from a more optimistic 2.1%).
The news of only two rate cuts plunged Wall Street to one of its worst days of the year (higher borrowing costs mean less cash burning holes in investors’ pockets). The Dow dropped 1,100 points (2.5%), marking its first 10-day losing streak since ‘74; the S&P 500 fell nearly 3%; Nasdaq dropped 3.5%.
CHRISTIAN PERSPECTIVE
Too often, we let eternally insignificant things like the ups and downs of interest rates and the market control us. As you seek to steward your money well, keep your focus on the Giver rather than the gifts, and don’t neglect generosity.
“For you know the grace of our Lord Jesus Christ: Though he was rich, for your sake he became poor, so that by his poverty you might become rich… At the present time your surplus is available for need, so that their abundance may in turn meet your need, in order that there may be equality.”
2 Corinthians 8:9, 14 (CSB) (read full passage)