The Federal Reserve’s continued unwillingness to cut interest rates may be a source of ongoing frustration to President Donald Trump but still presents opportunities for advisors to tap into growth.
“The Fed didn’t move today—but it didn’t need to,” said Gina Bolvin, president of Bolvin Wealth Management, in a statement Wednesday. “This is a central bank that’s comfortable waiting, watching, and staying flexible.”
For Bolvin, this is no longer a policy-driven market, but rather a fundamentals-driven one. “The next phase belongs to companies that can grow without relying on lower rates,” she added.
“Healthcare is attractive and not interest-rate sensitive,” Bolvin told InvestmentNews. Bolvin Wealth Management also likes large-cap tech and communication services. “One can also argue that [large-cap] tech is now a somewhat defensive less sensitive to rates because they have such strong balance sheets and are responsible for over 50% earnings growth in S&P 500," Bolvin said.
Wealth managers have already highlighted the strength of the healthcare sector in 2026, boosted by valuation and demographic tailwinds.
The tech sector has endured something of a turbulent time recently amid fears about AI’s impact. However, Jeffrey Roach, Chief Economist for LPL Financial, thinks that AI is positioned to play an important role given broader economic and societal dynamics. “The likely productivity boost from AI could not come at a better time, if it can be the antidote to slower population growth, shrinking labor force, and persistent services inflation,” he said, in a statement Wednesday.
Oil prices have been particularly volatile as a result of the ongoing Iran conflict. “Wednesday’s FOMC meeting provided little comfort to an already jittery market, as it’s clear that the oil-driven spike, which is likely a temporary shock, is causing the central bank to delay any rate cut plans,” said Dennis Follmer, chief investment officer at Montis Financial, in a statement. “That’s a disappointment for a market that earlier this year was pricing in a much more dovish central bank.”
Follmer noted that stocks have been in a narrow trading range so far this year, and continue to vacillate between the upper and lower bounds of that trading range based on oil price movements. “From the market’s point of view, oil prices are now driving not just stock prices, but Federal Reserve policy, and while this may be a short-term phenomenon, it’s the one the market is dealing with right now,” he added.
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