Lower interest rates can be a positive catalyst, but there's more to the story.

The Federal Reserve is widely expected to finally resume cutting interest rates after a long pause. In a nutshell, the Fed's dual mandate is to keep inflation under control and maximize employment, and it's often a balancing act.

Inflation has gravitated toward the Fed's 2% target, and it doesn't look like tariffs are causing the inflation spike many had feared, so the Fed appears ready to resume lowering benchmark interest rates toward historically neutral levels. According to the CME FedWatch tool, financial markets are pricing in a roughly 92% chance that we'll see a quarter-percentage point rate cut in September and a total of at least two cuts by the end of 2025.

There are some types of assets that are

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