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How Can Investors Stay Ahead Amid New Tariffs and Market Volatility

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How Can Investors Stay Ahead Amid New Tariffs and Market Volatility?

Investors often hear about market swings, but what really drives these ups and downs? The stock market isn't just about numbers—it reflects the emotions and expectations of investors.[1] The legendary investor Benjamin Graham introduced the idea of "Mr. Market," a fictional character who represents the market’s often erratic and emotional behavior. Mr. Market has certainly been active in recent months, with the S&P 500 reaching record highs in February before experiencing a sharp decline in March.[2] The question on many minds is: What does this mean for the future, and how should investors react?

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In late 2024, the Federal Open Markets Committee (“FOMC”) opted to begin cutting rates again, based on the apparent ‘soft landing’ it had achieved by delivering lower inflation without imperiling its second mandate of full employment.The last meeting saw a pause in this downward trajectory, with the target range held at 4.25% to 4.50%. In this article, we delve into the reasoning behind the latest decision, and examine how the events and the data published since may influence the future path of rates.

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