Looking for value in a “rich” market after the Fed cuts rates
This morning, the Fed delivered as expected, while the rhetoric led to volatility but ultimately a mixed close for stocks: • The Fed cut interest rates by 0.25% as expected and pencilled in 2 more cuts before Christmas. • However, looking ahead at the outlook for additional rate moves, Powell was cautious, saying the Fed was now in a “meeting-by-meeting situation.” • The vote was 11-1, with Governor Miran dissenting in favour of 0.5%; he will now be on Trump's Christmas card list. • Chair Jerome Powell pointed to growing signs of weakness in the labour market to explain why officials decided it was time to cut rates after holding them steady since December amid concerns over tariff-driven inflation.