These 3 ETFs Could Shine as Interest Rates Fall

The Federal Reserve recently cut its benchmark short-term interest rate by 25 basis points. The central bank cited slowing economic growth, notably on the jobs front. The Fed's mandate to keep the economy and jobs both growing while keeping inflation under control has been challenging lately, making it difficult to determine what the prime rate should be. The current forecast on the economy's direction points to one to two more rate cuts in 2025.The market celebrated the Fed's action, and certain stocks stand to benefit more than others in a lower interest rate environment. These three exchange-traded funds (ETFs), focused on dividend-paying stocks, should do particularly well since it's more challenging to get adequate income from fixed-income investments like CDs and bonds in a low-rate environment.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool