Fed Cuts Rates for Third Time in a Row

Summary

The Federal Reserve cut interest rates by 25 basis points, marking the third consecutive cut, aligning with market expectations. This decision reflects a shift from inflation concerns to risk management amid economic uncertainties.CoinLive+ 3

Impact Analysis

So, the Fed’s third rate cut in a row is telling us they’re more worried about managing risks than inflation right now. Powell’s comments about stabilizing the labor market and controlling inflation show they’re trying to balance a tricky situation. The timing is interesting—right before the holidays, when consumer spending is crucial. The internal split, with 9 out of 12 members supporting the cut, suggests there’s real debate about the future path. This could mean more volatility ahead as markets digest these mixed signals. The immediate impact? Dollar weakness and a boost in equities and precious metals. But watch out for geopolitical tensions and tightening credit conditions—they’re not going away. For the portfolio, consider increasing exposure to sectors that benefit from lower rates, like tech and consumer discretionary, while keeping an eye on safe havens like gold.Zhitong+ 3