The stock market seemed frazzled after Fed’s 1/2 point rate cut
Posted By RichC on September 18, 2024
Investors and traders on Wall Street started today in a pensive mood as all impatiently waited for the much telegraphed “first rate cut since 2020.” Market journalists debated if Chairman Powell and the Federal 
Reserve board members would see the slowing economy as a sign that their tightening polices had stifled inflation enough to managed a “soft landing” … or if the U.S. economy is tipping towards a recession. The jury was split as to whether the slowing economy warranted a 1/4 point or a full 1/2 point rate cut to start the cycle … or if the bigger cut might indicate we need to be more concerned.
As an amateur when it come to economics, I’m not sure if inflation has been whooped enough, or if it might cycle back? Are we in for a recession … or did the Fed step in at the right time with a big enough cut to prevent a collapse? Time will tell … but the markets ended the day 
a little fickle with today’s 1/2 point cut.
Comments