Buy 5 Growth ETFs as Fed Stays Put, Eyes Rate Cut
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 13 2024
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Source: Business Insider
- Fed Interest Rate Decision: The Federal Reserve maintained its benchmark interest rate between 5.25% to 5.50%, revising its rate cut prediction to just one for 2024 due to sticky inflation.
- Inflation Outlook: The Fed revised its 2024 inflation forecast to 2.8% and emphasized the importance of inflation returning to the 2% target before considering rate cuts.
- Optimism in Policy Statement: The Fed expressed optimism about progress toward the inflation target, with Chair Powell acknowledging risks of waiting too long or acting too early on rate cuts.
- September Rate Cut Possibility: Odds of a rate cut in September rose following a CPI report, with a 55% probability of a 25-bp rate cut, up from 46.8%.
- Growth ETFs Recommendations: Highlighted low P/E growth ETFs like Invesco Bloomberg Pricing Power ETF (POWA) and others as good investment options in the current economic environment.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
