At The Family Office, we were not surprised by the Federal Reserve’s (the “Fed”) decision to lower interest rates by 0.5%. Historically, the US had experienced 12 to 13 economic recessions, nine of which resulted from the credit crunch caused by monetary tightening.
The Fed lowered interest rates by 0.5% in response to rising unemployment rates and to avoid an economic recession in the US and globally, signaling that it will continue to lower rates this year and next year. Furthermore, the decline in inflation and the steady prices of commodities worldwide have contributed to enhancing the chances of a soft landing.
We advise investors to focus on sectors that benefit from lower interest rates, such as regional banks and the real estate sector. There are also investment opportunities in debt instruments, where investors can combine private debt with liquid debt instruments to achieve returns of up to 8% over the long term.
Watch the full interview above.
Reasons Behind the 0.5% Interest Rate Cut by the Federal Reserve | Wassim Jomaa in an Interview with Al Arabiya
Reasons Behind the 0.5% Interest Rate Cut by the Federal Reserve | Wassim Jomaa in an Interview with Al Arabiya
Al Arabiya hosted Wassim Jomaa, CFA, Chief Investment Officer at The Family Office, to discuss the reasons behind the 0.5% interest rate cut by the Federal Reserve and the focus areas in light of this move. Below are the highlights of the interview:
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Since 2004, The Family Office has been the wealth manager of choice for more than 500 ultra-high-net worth families and individuals, helping them preserve and grow their wealth through customized solutions in diversified alternatives and more. Schedule a call with our financial experts and learn more about our wealth management process.