August 21, 2025
By Peter Bower
Many investors’ eyes will be on the Fed Chairman’s speech this Friday at the central bank’s conference in Jackson Hole. The intense interest tells us that the level of current interest rates is very important. The chairman’s speech may hint at the Federal Reserve’s next moves. Certainly, lower rates are very important for the current bull market. The same or higher interest rates will cast a pall on the uptrend.
The Federal Reserve usually follows market expectations rather than leads them. If rates are lowered when investors are concerned with inflation, then longer-term rates may go higher. Investors could fear that the Fed was not serious about fighting inflation. Remember, Fed actions only affect short-term interest rates. The rest are set by investors and their actions. Investors are now ready for lower rates.
Hopefully, investors get the signal that interest rates will begin declining soon. The Bull and his partners have predicted that the September Fed meeting would most likely be the beginning. We are keeping our fingers crossed. If that signal does not come, then we may all be in for a rocky stock market. Regardless, a good strategy should see us through. Stay steady my friends.
-The Lonely Bull
