Inflation Cools: Are Interest Rate Cuts and a Stock Market Surge on the Horizon?

High inflation in 2022, reaching a 40-year peak, prompted the Federal Reserve to significantly raise interest rates. This aggressive approach aimed to curb inflation and bring it closer to the target rate of 2%. The strategy proved effective, as inflation has steadily declined throughout 2023 and into 2024. As a result, the Federal Reserve is expected to lower interest rates in the near future, potentially impacting the stock market in unexpected ways.