So here's everything that you need to know about today's FC rate decision. So let's go ahead and start sharing my screen. Yes, NASDAQ Market is currently sitting at all-time highs. It hit highs of 4473 it closed at 40374, but after market hours, it's at 40436.

If we look at the overall weekly chart, you can see that based off of previous alltime highs that we were at in 2021. Yes, by the end of 2023, we have already surpassed that by making new highs of 40436. I'm going to make today's video super easy to understand. Was what was reported today unexpected? No.

The rate decision came in as expected that the Federal Reserve was going to pause so they did not raise interest rates. They did not cut interest rates, they stayed at what the market was already at, right? But it's what was stated in that Fomc report that really caught a lot of people by surprise that caused the market to Rally in a positive way. And the whole reason behind that is because of this main specific point. So also, the Fed's release was uh, Central Bank Summary of Economic Projections again, which includes the central Bankers projection for interest rates next year.

So pretty much it's a report that projects where they expect interest rates to be next year. As of right now, we sit at a whopping 5 5.25 to 5 5 at the highest that we've sat at in the past 22 years. But the FED now sees a 75 basis point rate cut coming in 2024, which accounts for one more rate cut then projected in December. So originally what the market already factored in is maybe a half basis point, which is a 0.50% rate cut in 2024.

This is an official statement from the Federal Reserve and now this is coming in a basis points higher, right? So it goes from you know, the Uh 0.5% to now 75% Which means that more rate cuts are coming in 2024 than what is expected. That is what is causing the market to react in a positive way. and you might be asking Well Ricky Why are rate Cuts good for the market? And let me make this super simple to understand for some of our beginners out there: I Know if you're experienced, you probably don't need this explanation, but just just hear me out. The reason that the economy in 2022 to 2023 really slowed down was because the Federal Reserve saw inflation going up to 99.1% They needed to slow down the economy and the only thing that they can do is raise interest rates to really slow down the economy, right? So when they raise interest rates, they make it more expensive for people like you and I to borrow money, right? So if we have to borrow money to buy our groceries or to pay our rent or to pay our you know, car bills and if they make it more expensive to borrow that money, we're probably going to spend less money so we don't have to borrow as much, right? But when they begin to cut these interest rates, they make it less expensive for people like you and I and for businesses to borrow money.

So therefore, if it's more affordable to borrow money, what do you think that does to our overall economy? It's more affordable to borrow money than more likely we're willing to take the risk and spend more money because it's cheaper to borrow the money, right? It's It's a very simple breakdown on how: making it less expensive with lower interest rates, you make it more affordable for people to borrow money. Therefore, you promote economic growth and therefore the overall economy should be doing better. And that is why markets are going up. I Wanted to make it very, very simple to understand of what went on today.

Uh, when it comes down to tomorrow and the economic reports that we have put in place, we have initial claims, continuing claims. Let me go ahead and show you this very quickly. We have initial claims. Continuing claims: Retail sales, retail X sales We have export prices, export prices X import prices and then we have business inventories.

All of these, uh, most of these are all going to be released before the Market opens and we will be talking about it during tomorrow's live trading session. But yes, I Wanted you guys to understand why exactly the market was going up. And it's not just because the Federal Reserve paused interest rates because that was already factored in and that was already expected. It's because they're expected to cut rates more in 2024, which was not already factored in, which just simply promotes economic growth because it makes it less expensive for people like you and I to borrow money.

Now that you know that, hopefully you can make a more informed decision when it comes down to the series of Trades that you choose to take. Now again, one thing that a lot of people talk about is any reaction tends to be an overreaction. We'll see that if tomorrow, the market continues to rally, and if so, that's in favor of NASDAQ And if not, then again, that's in favor of the inverse ETF And we can talk about that during tomorrow's live trading session. I Hope that you learned something new I Hope that it earned a thumbs up.

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But most importantly, you get to hear my thought process and breakdown behind every trade I take during that live stream and if you feel like that would be useful for you as a complete beginner, then make sure you take 2 minutes. Click the second link in the description down below and hopefully I will see you tomorrow at Market Open for our live session! Like always, let's make sure that we end the year on our green note. Take Care Team.