😀 Fed keeps rates steady

and stocks had a good day

Good morning investors! The market rebounded yesterday with most sectors closing higher. One of the biggest winners was Ripple that gained after CEO Brad Garlinghouse said SEC is dropping its lawsuit against the company.

Today we cover:

  • Fed keeps rates steady

  • Boeing jumps

  • Tancent beats

📊 Economy and News 

Fed Holds Rates Steady but Signals Cuts Ahead Amid Economic Uncertainty

The Federal Open Market Committee kept rates between 4.25%-4.5%, unchanged since December, as markets had expected. Officials also updated their economic projections through 2027 and slowed the pace of bond reductions.

Despite economic uncertainty from tariffs and fiscal policies, the Fed anticipates two quarter-point rate cuts by the end of 2025. Stocks surged, with the Dow Jones gaining over 400 points. Fed Chair Jerome Powell emphasized a cautious stance, saying rates could remain elevated if inflation stays above target or the labor market weakens.

The Fed noted growing economic uncertainty, moderating consumer spending, and inflationary pressures from tariffs. Growth projections were downgraded to 1.7% for 2025, while inflation is now expected at 2.8%. The outlook for rate cuts in future years remained largely unchanged.

Additionally, the Fed scaled back its balance sheet reduction, limiting Treasury runoff to $5 billion monthly while maintaining the mortgage-backed securities cap. Fed Governor Christopher Waller dissented, preferring to keep the original reduction pace.

Economic uncertainty persists as the administration reviews new tariffs. Consumer confidence has been affected, with inflation expectations rising. Despite slow job growth, Bank of America’s CEO sees steady consumer spending, projecting 2% GDP growth. However, concerns about stagflation remain, with inflation edging higher as growth slows.

Global hits:

Good to know: A rally in Chinese stocks since the start of the year is prompting investors to predict that mainland shares will outperform their American peers.

Shocking: Audi to cut 7,500 jobs as Germany’s auto industry struggles. Also, Tesla booted from Vancouver International Auto Show over ‘safety’.

Are you happy with Fed's decision?

Login or Subscribe to participate in polls.

Sponsored by Boxable

Did you know that car factories, like Ford, can output one car per minute? That’s right, there’s an assembly line for cars but why hasn’t anyone done that for homes? Well, it turns out someone is trying to…

BOXABL is the home construction company bringing assembly line automation to the home industry. With their patented technology and 53 patent filings, BOXABL believes they have the potential to disrupt a massive and outdated trillion dollar building construction market.

Most houses take seven months to complete. BOXABL can put one out of the assembly line every four hours, including electrical, HVAC, and plumbing! Now, the company is raising funds and has made shares available to the public but the round is closing soon on StartEngine!

Currently, shares are being offered at $0.80 per share. With a $1,000 minimum investment, you can join 40,000 investors to help solve the housing crisis. 

Time is running out to invest in BOXABL on StartEngine. Invest now.

Disclosure: *This is a paid advertisement for Boxabl’s Regulation A offering. Please read the offering circular here. This is a message from Boxabl.

📈 Stocks

S&P 500 5,675.29 (+1.08%)
DJIA 41,964.63 (+0.92%)
NASDAQ 17,750.79 (+1.41%)
BRENT CRUDE 70.78 (-0.01%)
* Prices as of Mar 20th, 12:20 AM UTC

Boeing soars as it paints a positive picture

Boeing's stock rose Wednesday after Japan Airlines ordered 17 new planes, though 11 of its aging Boeing 767s will be replaced with Airbus models. Also, its chief financial officer told an investor conference that the airplane maker was on schedule to meet its target of delivering the government’s mandated limit on 737 Max model planes per month.

Furthermore, speaking at a Bank of America investor conference, West expressed optimism about the year ahead, highlighting significant improvements in cash flow, potentially saving the company hundreds of millions.

But, Boeing wasn’t the only winner yesterday. The market rallied yesterday. The Dow and the S&P 500 are more than 6% and more than 7%, respectively, below their recent closing highs. The Nasdaq, meanwhile, is roughly 12% off its record close.

Exciting: Shopify surged on the news the commerce technology company is transferring its US stock listing to the Nasdaq Global Select Market from the New York Stock Exchange (NYSE). Also, CoreWeave to ask for $47 to $55 per share in IPO.

Google in the news: Google announced its largest acquisition, buying cybersecurity firm Wiz for $32 billion. Furthermore, the tech giant also settled a $28 million lawsuit over alleged pay and promotion bias. Lastly, Google and Apple have been hit with EU antitrust actions under cloud of Trump tariff threats.

Tencent beats: Tencent reported better-than-expected fourth-quarter earnings . The company’s capital expenditure more than tripled in 2024 as it ramped up AI investments to compete with rivals like Alibaba.

  • Revenue: 172.4 billion yuan ($23.9 billion) vs. 168.9 billion yuan expected

  • Profit: 51.3 billion yuan vs. 46.03 billion yuan expected

Revenue grew 11% year-over-year, while profit surged 90%. Domestic gaming revenue rose 23% to 33.2 billion yuan, boosted by hits like Honour of Kings and Peacekeeper Elite. International gaming revenue increased 15% to 16 billion yuan.

🔐 Crypto

Bitcoin $85,125.10 (+1.97%)
Ether $1,984.12, (+1.59%)
Solana $130.57 (+3.64%)
Total market cap $3 (-%)
* Prices as of Sep 3rd, 12:20 AM UTC

How much Bitcoin does the U.S. government plan to buy? After announcing the Strategic Bitcoin Reserve, bitcoin investors were unsure, until this week. The price of Bitcoin is still down and the market has not reacted to this news. Everyone’s attention is elsewhere.

💵 Personal Finance

Oscar Wilde: Beware the Cost of Lifestyle Inflation

The witty playwright Oscar Wilde enjoyed a meteoric rise in Victorian England, earning today’s equivalent of millions from his works like The Importance of Being Earnest. Yet, he squandered it on extravagant dinners, fine clothes, and a flamboyant lifestyle. When legal troubles hit in 1895, his finances collapsed, leaving him bankrupt and imprisoned.

Lesson: Income growth doesn’t justify unchecked spending. Lifestyle inflation can erode wealth faster than you build it—live below your means, even when success tempts you otherwise.

💰 Be a Better Investor

"Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver."

Ayn Rand

Resources:

What did you think of today's newsletter?

Login or Subscribe to participate in polls.

👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.