“Only Two Cuts in 2025!” – Federal Reserve Cuts Rates by 0.25% Explained
Here's what you need to know about the Fed's latest rate cut!
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Hello 👋 I’m Humphrey, I used to be a financial advisor, worked in gaming/tech, and started my own eCommerce business. I make practical, rational content on investing, personal finance, the news, and much more with a data-backed approach. My goal is to help you with financial literacy and creating wealth.
PS: I am no longer a current Financial Advisor, any investment commentary are my opinions only. Some of the links in this description are affiliate links that I do receive a commission for & they help support the channel!
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⏱️ Timestamps:
0:00 – Start Here
1:03 – Inflation Report
4:17 – Stock Market
6:44 – Housing Market
9:28 – Crypto Market
11:36 – Tariffs
Note: Today’s stocks traded down on the news that the Fed may only cut rates twice in 2025. This is not great in the short term because we were pricing in 3-4 rate cuts in 2025.
One thing I don’t understand is that the extra 0.25 or 0.5% rate cut (for 3-4 more cuts vs 2 more cuts) translates to -4% movement in the stock market. Will a rate cut 3 quarters from now really have much of an impact on what they think rates should be years from now?
Do you think the market overreacted to this news?
So much for those post-election gains. Dammit
Lost everything I made from the trump bump plus some 😂😭
im still up post election!
Just wait. You’ll be fine and in the meantime, some things are on sale.
Still way up since the election here
I see sooo many stocks on sale! Yay!
Word
“On sale” for 2% off all time highs… woo hoo…
@@jackcarlosyeah, bot behavior with these “stocks on sale” comments
Nothing is on sale 😭.
@@clh1866 not with that attitude
The tarrifs portion was interesting and something I was thinking about. Since many economists have said that a number of Trump’s plans would increase inflation, I was wondering if the fed changed it’s rate cut plans for 2025 due to this expected inflation growth
perhaps, yeah!
Interesting take.
you may be onto something
Doubtful they would lower rates for an event that hasn’t happened, done by a guy who isn’t in office yet. These guys all know we are in a tough spot given the servicing of the national debt is now near the top of the governments expenses. HY was talking about a guy making minimum wage making a little more as a driver of inflation-what about the trillion in debt every hundred days or so added to the national debt…or ever increasing ceo pay?
@@pete5691the market and the FED are forward looking. The tanned wannabe dictator is promising tariffs and mass deportations. The markets are listening.
This has nothing to do with the national debt.
Remember when JP said it was “transitory”? Same thing with today’s statement. He’ll change his mind next year.
Great video Humphrey! Love the Delorian in the back
Right on!
I prefer unemployment rates to be closer to 3%. Employers are less likely to be abusive if they know there’s a reasonable chance you can find another job.
Yeah of course. Policymakers balance this desire against employer’s desire to operate profitably.
Higher employment = higher inflation, unfortunately.
@@norwalkiianNo. lower inflation loves lower unemployment. It means they can raise prices and keep wages lower since if you asked for a pay raise, they’ll fire you and hire someone else in at cheaper rates. Fewer workers helps tamp down inflation since if you post record profits, your workers will ask for more money or walk and you’re out the labor who works for you that gave you record profits. So you pay more to keep labor.
I’m from 2 hours in the future. The market is spinning down the toilet 🚽
Oh no! Better sell everything! Sell sell sell!!!
@oli1682 well I’m from the future so, I already sold. But seriously. I’m not selling. Just saying.
Glad I did wait before I go and buy some gold haha
My portfolio got absolutely crushed today.
Same!
It will bounce back, always does.
Is probably getting even lower but leave the money there for couple years and this will be forgotten by then
This is when you buy more
Best time to buy is a sale. We’re in it for the long
Thanks for the rundown. Very clear and succinct.
Have you done a video breaking down the best investment brokerages? Vanguard vs Fidelity vs Webull vs RobinHood, etc? Thank you
So glad I paid off my mortgage this week.
Nice 🎉
Congrats 🎈🎊🎉
Congrats! That’s amazing!
@ thank you very much!
Hey question how do you cause a flash Crash and what does that have to do with the Canadian dollar and tariffs.
The wage cost and inflation reminds me of what happened post Covid with what seemed like hyperinflation
So you’re going to judge bitcoin based off of your bad experience with a bitcoin transaction from 12 years ago and think that’s the case today technologically speaking ?
My recommendation to novice investors is to purchase equities in reputable companies and keep onto them for as long as they remain reputable. Simply do this and disregard the market opinions and forecasts, which are often more entertaining than practical.
Although I primarily merely purchase and hold equities, my portfolio has been losing money for a time. Unfortunately, you will need to remain consistent and often rearrange your portfolio in order to be able to generate good gains.
The truth is, the role of an financial advisor can often be overlooked but should never be underestimated. After facing a significant portfolio loss in 2020 during the COVID pandemic while trying to manage my investments on my own, I decided to reach out to an investment advisor. At that time, I had about $126K left in my portfolio. Now, without having to lift a finger, I’m semi-retired, working only 7.5 hours a week, and I’m just 15% short of my $1 million retirement goal thanks to my subsequent investments.
Thanks for sharing your experience! I’ve been managing my portfolio myself, but it’s not working out. Do you have any recommendations for a good investment advisor? I could really use some help.
My CFA, Judith B Richards, is a renowned figure in her field. I recommend researching her name online; you’ll find all her credentials and everything you need to work with a reliable professional. With many years of experience, she is a valuable resource for anyone looking to navigate the financial market. To be honest, I almost didn’t buy the idea of letting someone handle growing my finance, but so glad I did.
She appears to be a true authority in her profession with over two decades of experience. I looked her up on the internet and skimmed through her site, very professional. already sent her an inquiry hoping for a response soon.
When I first read The Secret Doctrine of Wealth, I realized how stuck I was in the system. It’s crazy how much it changed my perspective.
thank you for share!
goated book!
Just to be clear: the Fed’s preferred gauge of inflation is actually Core PCE, not Core CPI. PCE tends to be lower than CPI and has a less volatile housing component. Current Core PCE is 2.8% (as of Dec 19th, 2025), and is lower that the long-term historical average. This is probably why the Fed was comfortable with a modest cut.
2:21 Were these considered to be a net increase in jobs? How many jobs were lost at the same time? How many people found new employment, but in a lesser job / greater job position?