3 Reasons The Fed Made The Right Move And How You Can Take Advantage…

I’m willing to bet most of you folks have never landed an F-18 Hornet on an aircraft carrier. But I’m sure we can all agree that it’s much more difficult and complex than it seems.

As the aircraft approaches the final moments before landing, the pilot will have to rely on a number of tools and instruments…not to mention a gut instinct to make any necessary last-minute adjustments. And that’s not even getting into the long list of things that could go wrong at any point during the entire process…

But the goal is simple. As you land, you want the tail hook to successfully engage one of the arrest wires to quickly decelerate the aircraft. And just like that, you have a smooth and successful landing.

I bring this up because you’ve probably heard a lot of talk over the past year or so about whether the Federal Reserve can achieve a “soft landing.” This refers to a slowdown in economic growth, usually caused by rising interest rates, without going into an outright recession.

And like landing a Nimitz-class carrier at 150 knots (175 mph), that’s easier said than done.

But that’s exactly what the Federal Reserve was aiming for on Wednesday when it cut key interest rates by 0.5%.

I talked about what was behind the tapering, as well as my assessment of Chairman Jerome Powell’s press conference and the Fed’s new quarterly dot plot survey in Thursday’s survey. 360 Square.

Now, the Fed has a mixed record when it comes to getting a soft landing in the past. But in today’s 360 SquareI want to discuss three reasons why I think a 0.5% rate cut was the right move. I will also share with you an obvious way you can take advantage.