#social-security-cola

#social-security-cola

The U.S. Federal Reserve's latest interest rate cut of a quarter percentage point lowered the benchmark federal funds rate to a range of 3.5%-3.75% in mid-December. This move continues to spark optimism among market participants, as valuations of most risk assets are directly tied to the risk-free rate, at least when it comes to modeling out a company's discounted future cash flows. Bond yields have also come down considerably in recent months (lower yields mean higher prices), so investors are winning across the board.