Markets on edge ahead Fed decision
Stocks (^GSPC, ^IXIC, ^DJI) are mixed in the morning session ahead of the Federal Reserve's January interest rate decision, set to be announced later today at 2 p.m. Advisors Capital Management partner and portfolio manager JoAnne Feeney joins Wealth to highlight economic risks for investors — noting challenges such as inflation, fiscal policies, and potential trade tariffs. “We have a very strong economy, though, at the moment, and there are no current signs that we're heading to a recession," Feeney says. "Nevertheless, we think it's wise to build portfolios with some resilience in them and potentially to build in some income so that when you do need cash off your portfolio, you're not forced to sell shares [when and if] shares happen to be down." Regarding the Fed's decision, Feeney anticipates that Federal Reserve Chairman Jerome Powell will likely adopt a cautious approach, as major policy changes are expected from the current administration that could "very well put upward pressure" on inflation. Feeney says the Fed will "take a wait-and-see attitude," explaining officials will likely maintain the current interest rates. Additionally, Feeney discusses the American consumer’s spending power, emphasizing that real personal disposable income has been growing amid rising prices. To watch more expert insights and analysis on the latest market action, check out more Wealth here. This post was written by Josh Lynch
