Impact of the Federal Rate Cut

The Federal Reserve's recent decision to cut the Fed funds rate by 25 basis points has influenced market perceptions positively, as many view it as a proactive step to stimulate the economy. The Fed’s chair, Powell, expressed an optimistic outlook for growth, attributing rising Treasury yields to economic expansion rather than inflation fears. However, uncertainty remains regarding how upcoming policies, particularly in light of tariffs and fiscal policies, could impact inflation and economic stability in the near term. Investors remain cautious yet hopeful, indicating a preference for equities as they gauge the implications of these monetary policy adjustments.