#MarketPullback "Interest rates are like gravity. If they are higher, they reduce economic growth (through higher borrowing costs) and stock valuations," Jason Ware, chief investment officer of Albion Financial Group in Salt Lake City, told me. In such an environment, the competition for dollars is fierce when it comes to asset allocation. This is because higher yields are stronger competitors against volatility and stock risks, he added. "In short, those are the key reasons why interest rates and, therefore, the Federal Reserve's policy are important," Ware said.

Powell surprised the market in December by saying that the Fed would have two rate cuts, not four, in 2025 because inflation remains and the agency wants to control it. That caused the market to plummet; the Dow Jones Industrial Average fell more than 1,100 points. Powell initially said that the Fed would not cut interest rates until inflation fell to 2%. It did not, and the Fed lowered the rate anyway, twice. The current inflation rate is approximately 2.9%.$BTC $XRP