Rate Cuts: Markets Got Powell’s Message — Smaller for Longer

Rate Cuts: Markets Got Powell's Message — Smaller for Longer

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The Fed went for it. The first cut to the benchmark fed funds rate in four years was a big one of 50 basis points. Market pricing had moved in the last few days to imply that there was a slightly better than 50-50 chance that this would happen, but the economists away from the trading floor largely weren’t expecting it. Only nine out of 113 economists who responded to Bloomberg’s survey expected a cut of this magnitude.

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