Federal Reserve's Rate Cut Reaction

The Federal Reserve recently reduced the benchmark interest rate by a quarter percentage point for the third consecutive time. This decision surprised investors, leading to a significant sell-off in U.S. stocks, with the S&P 500 experiencing its worst Fed-related day since 2001. Fed Chair Jay Powell emphasized the necessity for caution regarding further potential cuts, attributing this decision to the need for stable growth amidst ongoing inflation concerns. The Fed's actions highlight their focus on achieving a balanced approach to monetary policy, while the market grapples with the implications of a more conservative outlook from the central bank.