What happens to your cash when the US federal reserve cuts interest rates?
==========
On September 18, 2024, the US Federal Reserve cut its benchmark interest rate by 0.5% (50 basis points), marking the first cut in over four years since early 2020. The Fed Funds rate is now between 4.75% and 5.0%. Falling interest rates lead to lower cash yields, impacting global asset prices, including Singapore's six-month T-bill yields which dropped from 4.4% in August 2022 to 3.1% in September 2024. The Fed's actions influence Singapore's stock market, particularly REITs and banks. Following the rate cut, the i-Edge S-REIT Index rose 1.7% on September 19, 2024. While falling rates may reduce banks' net interest income, they still offer attractive dividend yields around 6%. The Fed's rate cuts are often a response to economic concerns, particularly regarding the US labor market.
#UsFederalReserve #InterestRates #Singapore #Reits #Banks #Economy #Investing #Tbills #CashManagement #FinancialMarkets
https://www.asiaone.com/money/what-happens-your-cash-when-us-federal-reserve-cuts-interest-rates
AsiaOne /
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2024-09-27 07:44:46
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npub1zhjr05pfsfatj93qpucqqym5hcrws0hcy5gdrcf0faws59wxzy4s20p8wnPublished at
2024-09-27 07:44:46Event JSON
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"content": "What happens to your cash when the US federal reserve cuts interest rates?\n==========\n\nOn September 18, 2024, the US Federal Reserve cut its benchmark interest rate by 0.5% (50 basis points), marking the first cut in over four years since early 2020. The Fed Funds rate is now between 4.75% and 5.0%. Falling interest rates lead to lower cash yields, impacting global asset prices, including Singapore's six-month T-bill yields which dropped from 4.4% in August 2022 to 3.1% in September 2024. The Fed's actions influence Singapore's stock market, particularly REITs and banks. Following the rate cut, the i-Edge S-REIT Index rose 1.7% on September 19, 2024. While falling rates may reduce banks' net interest income, they still offer attractive dividend yields around 6%. The Fed's rate cuts are often a response to economic concerns, particularly regarding the US labor market.\n\n#UsFederalReserve #InterestRates #Singapore #Reits #Banks #Economy #Investing #Tbills #CashManagement #FinancialMarkets\n\nhttps://www.asiaone.com/money/what-happens-your-cash-when-us-federal-reserve-cuts-interest-rates",
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