Recessions and economic slowdowns often don’t occur on their own. They are often the result of poor policy decisions. And that could be what has happened to the U.S. economy over the last year or so. As the economy has strengthened, the Federal Reserve has sought to take some of the “oomph” out of the economic expansion, and that’s resulted in interest rates rising since 2015.
Well, Jerome Powell and company may have raised too much and now have been forced to reverse course.
The Fed is now officially lowering rates for the first time in roughly a decade. More cuts could be on the horizon. For income seekers, that certainly throws a wrench in the machine. We’ve just gotten used to getting large yields from traditional income products once again. And with that, it may be time to switch up our playbooks when it comes to finding big-time dividend income.
Learn more about the business cycles here.