The Fed Cuts – Will the Bond Market Finally Listen?
The Federal Reserve cut interest rates by 25 basis points to 3.50%-3.75% in a 9-3 vote, with three members dissenting for the first time in six years. Fed Chairman Jerome Powell emphasized this is not the start of an easing cycle, but a move towards a neutral rate. The market reacted positively, with major indexes rising. However, Kevin Hassett's unexpected comments earlier in the week caused a spike in the 10-year Treasury yield, highlighting market uncertainties.
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