First Fed rate cut since 2008 fails to ignite markets

Is Fed losing its independence?

Anna Fedorova
clock • 3 min read

The US Federal Reserve has cut interest rates by 0.25% for the first time since 2008, as concerns mount over the global economy and weak inflation, but a lack of clear guidance as to the central bank's next move sent markets down.

The central bank trimmed interest rates to a range from 2.25% to 2% in a widely expected moved, following support from eight of its policy committee members to cut, while two were against. However, the move failed to buoy markets. The S&P 500 closed the day 1.1% lower at 2,980 points, while the Nasdaq and the Dow Jones are both down 1.2%. According to The Times, this reluctance from markets comes after Fed chairman Jerome Powell said: "This is not the beginning of a long series of rate cuts. You would do that if you saw real economic weakness. That's not what we're seeing." Accordi...

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