Enjoy the Rs 4 trillion.

On 14 December 2023, "Rs 4 lakh crore (Rs 4 trillion) added! Sensex soars 1000 points to fresh high as Fed rate cut hope triggers rally." ET. This was because on 13 December, "The Fed predicts interest rates will be considerably lower at this point next year than they are right now, signalling three rate cuts may be in the cards for 2024. But the Fed also expects inflation won't return to its target 2% rate until 2026." At this, "The Dow rose 1.4%, closing at 37,090.24 and blazing past its previous record high of 36,799.65, reached nearly two years ago." CNN. "Federal Reserve officials in December launched an expansive debate about a coming turn in US monetary policy," but "While the minutes did not provide direct clues about when rate cuts might commence, they reflected a growing sense that inflation is under control and growing concern about the risks that 'overly restrictive' monetary policy may pose to the economy." Reuters. But, it may not be so simple. "The number of Americans filing new claims for unemployment benefits fell more than expected last week," as claims for benefits "dropped 18,000 to a seasonally adjusted 202,000 for the week ended December 30." ET. Also, "US jobs growth surged unexpectedly in December," as "The world's biggest economy added 216,000 jobs in the final month of 2023 despite expectations of a slowdown from the prior month, according to Department of Labor data." ET. More people working means more money to spend. "Consumer spending in the United States increased to 15461.38 USD Billion in the third quarter of 2023 from 15343.55 USD Billion in the second quarter of 2023." Trading Economics. The gross domestic product (GDP) of the US was estimated at $27,610.128 billion on 21 December 2023. FRED. If US consumers spent over $60 trillion last year, prices are unlikely stabilise any time soon. Inflation actually rose in the eurozone in December. "Annual inflation in Germany and France, the European Union's leading economies, rose in December" "to 2.9% from 2.4% in November." This is because governments are unwinding subsidies on energy bills which soared because of the Ukraine war. "Annual core inflation in the eurozone fell to 3.4% in December from 3.6% in November." CNN. "Carrefour is telling customers in four European countries that it will no longer sell products, such as Pepsi, Lay's crisps and 7up because they have become too costly, in the latest tug-of -war over prices between retailers and global food giants." Reuters. "Customers in the supermarket broadly cheered the move." It's good that stock market punters in India made over Rs 4 trillion in December 2023 but what happens if the Fed is unable to reduce rates as expected. What you gain on the swings you may lose on the roundabouts. wikipedia. Enjoy while you can.