The U.S. Federal Reserve has kicked off its easing cycle by cutting its benchmark interest rate by 50 basis points on September 18th, marking the first such reduction in four years and signaling a pivot towards monetary easing. The substantial rate cut is seen as a response to economic slowdown concerns, and analysts warn that big Fed rate cuts are usually bearish. Historical data indicates that when the Fed cuts rates in response to a recession, the S&P 500 has declined by an average of 23.5% within 195 days of the first rate reduction. Investors are now examining how assets have performed after similar cuts, with some expecting further rate decreases by the end of the year as the Fed navigates between cooling inflation and sustaining economic growth.
#US Federal Reserve Rate Cuts and Global Markets: The US Federal Reserve cut its benchmark interest rate by 50 basis points in September, the first such reduction in four years. More cuts are expected by year-end, as the Fed navigates the balance between cooling inflation and…
💡In September, the Fed kicked off its easing cycle with a half-point rate cut. Our latest piece explores what this means for the economy and your investments, plus a look at how assets performed historically after such cuts 📉. 🔗 https://t.co/CzL0lWW7uQ https://t.co/it8jDpNZG7
⚠️THE FED CUT RATES BIG BY 0.50% ON SEPTEMBER 18⚠️ How do US stocks perform after the Fed cuts interest rates? Time to have a closer look at the historic stock market performance months after the Fed's first rate reduction. Read below 👇 https://t.co/qBmNxuI1Hv