- The Fed cut rates by 0.25%, but Jerome Powell framed the move as “risk management” driven by labor market weakness, leaving investors uneasy. Markets were flat as the Fed’s dot plot suggested a possible 50bps cut at a meeting later this year, though Powell stressed a meeting-by-meeting approach. Trump appointee Stephen Miran dissented in favor of a bigger cut, underscoring political pressure on the Fed and highlighting divisions that signal a cautious, uncertain path ahead.
Wall Street at last got its long-awaited cut to the base rate yesterday with Fed chairman Jerome Powell confirming interest would reduce by 25bps. So this morning markets are celebrating, right?
