The Federal Reserve cut interest rates by half a percentage point, ending its 'higher for longer' policy, which had been a hallmark since March 2022.
While the market rejoices with significant gains in response to the rate cut, experts caution that a confident reaction might be premature due to historical precedents.
The economic environment today differs from those past crises, yet the Fed's aggressive rate cut poses risks, particularly with inflation and unemployment still a concern.
A soft landing for the economy, as desired by the Fed, remains unprecedented, complicating investor expectations amidst a celebratory market response.
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