MARKET RECAP

• US markets made it seven weeks in row, up by 2.82%, bonds were up by 2.15% as interest rates continued to fall. The yield on the 10-year dropped by 32 basis points.
• Mortgage rates fell to under 7% for the first time since August of 2022.
• The Fed kept interest rates unchanged, but to everyone’s surprise, Powell sounded dovish and said that rate cuts were under discussion, contrary to a statement just 12 days before. The markets took off in response; not sure why Powell needed to go that far; hope this won’t be a replay of the 1970s when the Fed took its foot off the gas and inflation accelerated. Or maybe he sees a steeper economic decline than investors anticipate down the road and wants to get in front of it.
• CPI was up by 3.1% year over year.  Services, excluding energy, were up by 5.1%.

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