Will they or won’t they? Stocks have moved higher in the last quarter of 2025 as the Federal Reserve started to cut interest rates. However, investors are wondering what’s next. There are arguments for cutting or for pausing, and even the Federal Reserve is divided on the next move.
There are several arguments for cutting. Looser monetary policy is generally bullish for stocks for a variety of reasons, including lower borrowing costs for businesses. That could also fuel hiring, which would reverse the current trend.
