Federal Reserve Interest Rate Cuts

The Federal Reserve has decided to cut interest rates, breaking a previous trend of multiple increases since January 2022 aimed at combating inflation. The current expectation is for a reduction of either 25 or 50 basis points, with many analysts leaning towards the latter as an aggressive move. This decision is significant, as interest rates heavily influence various economic factors such as inflation, mortgages, and stock valuations. Lowering interest rates is anticipated to make equities more attractive, as decreasing yields on risk-free assets will prompt investors to seek better returns in the stock market.