SPRINGFIELD, MO. — The Federal Reserve announced they were cutting the federal interest rate by half of a percent this week.
That doesn’t come as a shock that there would be a cut to Richard Baker, who leads Fervent Wealth Management.
It’s the amount that caught him off guard.
“We were expecting the Federal Reserve to lower rates on this session, but we were surprised by how much they lowered it. We were expecting a quarter percent and they did a half percent, and that’s significant. So we’re concerned that the Federal Reserve may be concerned about the market going forward,” Baker said. “The economy overall is starting to slow down. So job reports starting to slow down. Retail is starting to slow down. We just had a report come out on Tuesday that showed retail across America, that of the 13 different areas, only five of them were positive. Just last month, ten of them were positive. The businesses in America are starting to have less business and business is slowing down. So Fed Reserve’s trying to do is trying to spur the economy before it falls into a recession.”