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- Fed Holds Rates Steady Amid Uncertainty 📈
Fed Holds Rates Steady Amid Uncertainty 📈
Ryan Serkes
March 20, 2025
The
Daily Trade
Hey Daily Traders,
The Federal Reserve's decision to hold interest rates steady at 4.25%-4.5% signals caution amid economic uncertainties, particularly concerning tariffs and slowing growth. Investors cheered the news, with the Dow Jones Industrial Average climbing over 400 points, while Fed Chair Jerome Powell assured readiness to adjust policies as needed, reflecting a nuanced approach to economic stability.
Meanwhile, in the art world, Lisa Schiff's sentencing for a multi-million dollar fraud case serves as a stark reminder of the importance of trust in financial dealings. Her conviction for defrauding clients, including celebrities, underscores vulnerabilities in the art advisory sector and the broader implications of financial misconduct.
Here's what's happening today:
- 📉 Fed holds rates, hints at cuts amid uncertainty.
- 🎨 Art adviser to stars sentenced for $6.5M fraud.
- 🚗 Auto suppliers hit hard by tariffs, face challenges.
- 🎬 New film hubs rise as Hollywood seeks cheaper locales.
- 🏛️ Delaware fights to retain corporate capital status.
Question
Do you believe the Federal Reserve should cut interest rates later this year, or is maintaining the current rate crucial for economic stability amid ongoing uncertainties?
Reply to this email with your answer
Stock Market  The Federal Reserve has decided to keep interest rates unchanged, maintaining the current range of 4.25%-4.5%. Despite the decision to hold rates, the Fed indicated that two rate cuts could be possible later this year. This announcement comes amid growing concerns over the economic impact of tariffs and a slowing economy. Investors responded positively, with the Dow Jones Industrial Average rising over 400 points following the announcement. Fed Chair Jerome Powell emphasized that the central bank is prepared to maintain elevated rates if the economy remains strong, but is also ready to ease policy if necessary. In its statement, the Federal Open Market Committee noted increased uncertainty in the economic outlook. The Fed's dual mandate of maintaining full employment and low prices remains a priority, and officials are closely monitoring consumer spending and inflation trends. The committee downgraded its economic growth outlook and raised its inflation projection, reflecting a more cautious stance. The Fed also announced a reduction in its quantitative tightening program, allowing fewer maturing proceeds from Treasurys to roll off each month. Key Takeaway
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Stock Market  Lisa Schiff, a renowned New York City art adviser with celebrity clients like Leonardo DiCaprio, has been sentenced to 2 1/2 years in prison for defrauding clients of $6.5 million. Operating through her firm, Schiff Fine Art, she misappropriated funds intended for art purchases, using them to finance her extravagant lifestyle. Her fraudulent activities included lying to clients and galleries about transactions and using client funds for personal expenses, such as luxury rentals and shopping sprees. Schiff pleaded guilty to wire fraud and is also required to repay the stolen amount and additional restitution. Schiff's actions have left a trail of financial damage, impacting at least a dozen victims, including artists and galleries. Her case highlights the vulnerabilities in the art advisory sector and the importance of trust and transparency in financial dealings. The sentencing underscores the legal consequences of financial misconduct and serves as a cautionary tale for both art advisers and their clients. Schiff's case is further complicated by ongoing legal battles and a bankruptcy case, which has delayed additional lawsuits against her. Key Takeaway
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Stock Market  Auto suppliers are facing significant challenges due to President Donald Trump's proposed tariffs on goods from Mexico and Canada. While most vehicles meet the United States-Mexico-Canada Agreement (USMCA) standards, many individual parts do not, leading to potential tariffs that could disrupt the supply chain. Suppliers are lobbying for exemptions, as the tariffs would increase costs and strain an already fragile post-COVID supply chain. Larger suppliers like American Axle & Manufacturing Holdings and Magna International have seen stock declines, reflecting the financial pressure on the industry. The tariffs pose a risk to the broader automotive industry, as suppliers play a critical role in vehicle production. The potential for increased costs and production disruptions could impact automakers' ability to meet demand, leading to higher vehicle prices for consumers. The situation highlights the interconnectedness of the supply chain and the challenges of navigating trade policies. Industry leaders emphasize the need for a resilient supply chain and caution against policy shifts that could further destabilize the sector. Key Takeaway
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Real Estate  As Hollywood faces economic challenges, new film production hubs are emerging across North America and Europe. States like Kentucky and North Carolina are attracting filmmakers with generous tax incentives and new soundstage facilities. Louisville is redeveloping the historic Louisville Gardens arena into a film studio complex, while North Carolina's White Lightning Studios is preparing for major streaming projects. These developments reflect a broader trend of productions seeking cost-effective locations to offset the fragile economics of content creation. In addition to domestic growth, international locations like the U.K. and Canada continue to draw Hollywood projects with tax relief and currency savings. The expansion of production facilities in these areas highlights the industry's shift towards finding value-driven solutions for film and TV production. This trend is driven by the need to balance production costs with the demand for high-quality content, as studios navigate the challenges of a changing entertainment landscape. Key Takeaway
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Stock Market Delaware is facing a challenge to its status as the corporate capital of the world due to proposed legislation that critics say could weaken shareholder rights. The bill, backed by Governor Matt Meyer, aims to modernize corporate law, but opponents argue it will lower governance standards and limit accountability for corporate officers. The legislation comes in the wake of a judge's rejection of Elon Musk's Tesla compensation package, which has sparked concerns about Delaware's legal environment for corporations. Supporters of the bill argue it is necessary to maintain Delaware's appeal as a corporate hub, while critics warn it may drive companies to incorporate elsewhere. The potential impact on Delaware's economy is significant, as corporate license fees and associated tax revenues contribute substantially to the state's budget. The situation highlights the delicate balance between corporate interests and shareholder rights, with implications for Delaware's legal and economic landscape. Key Takeaway
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Today's Technical Analysis
RSI Sell | MFI Hold | WillR Sell | AO Sell |
CCI Sell | BBANDS Sell | ULTOSC Sell | STOCH Sell |
RSI Sell | MFI Sell | WillR Sell | AO Sell |
CCI Sell | BBANDS Hold | ULTOSC Sell | STOCH Sell |
RSI Sell | MFI Sell | WillR Sell | AO Sell |
CCI Sell | BBANDS Hold | ULTOSC Sell | STOCH Sell |
RSI Buy | MFI Buy | WillR Buy | AO Hold |
CCI Buy | BBANDS Hold | ULTOSC Buy | STOCH Buy |
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Technical Indicator Information
Relative Strength Index (RSI) | Period: 14 days | Overvalued threshold: 70 | Undervalued threshold: 30
Money Flow Index (MFI) | Period: 14 days | Overvalued threshold: 80 | Undervalued threshold: 20
Williams Percent Range (WillR) | Period: 14 days | Overvalued threshold: -20 | Undervalued threshold: -80
Aroon Oscillator (AO) | Period: 14 days | Overvalued threshold: 75 | Undervalued threshold: -75
Moving Average Convergence/Divergence (MACD) | Period: 26/12/9 days | Overvalued threshold: MACD crosses below MACD Signal | Undervalued threshold: MACD crosses above MACD Signal
Stochastic Oscillator (STOCH) | Period: 14/3/3 days | Overvalued threshold: %K crosses below %D above 80 | Undervalued threshold: %K crosses above %D below 20
Commodity Channel Index (CCI) | Period: 20 days | Overvalued threshold: 100 | Undervalued threshold: -100
Bollinger Bands (BBANDS) | Period: 20 days | Overvalued threshold: price >= upper band | Undervalued threshold: price <= lower band
Parabolic Stop and Reverse (SAR) | Period: variable 50 - 100 days | Overvalued threshold: SAR crosses above price | Undervalued threshold: SAR crosses below price
Triple Exponential Average (TRIX) | Period: 15 days | Overvalued threshold: TRIX crosses below 0 | Undervalued threshold: TRIX crosses above 0
Ultimate Oscillator (ULTOSC) | Period: 28/14/7 days | Overvalued threshold: 70 | Undervalued threshold: 30
Directional Movement Index (DMI) | Period: 14 days | Overvalued threshold: PlusDI crosses below MinusDI | Undervalued threshold: PlusDI crosses above MinusDI
Average Directional Index (ADX) | Period: variable 14 days | Requirement: >= 25
Analysis is only performed on securities with market caps in excess of $100 million and with daily trade volume in excess of $50 million.
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