Thoughts on the Fed Rate Cut
U.S. monetary policy has taken another U-turn.
The Federal Reserve (Fed) announced a 25-basis point (0.25%) rate reduction July 31. As shown in the LPL Chart of the Day, The Federal Reserve’s First Rate Cut in 10 Years, the rate cut was the first since the 2008 Financial Crisis. The Fed also said it would end its asset sales on August 1, instead of in October, in order to align its balance sheet and rate policies.
Rate cuts have been a sobering reality in investors’ short-term memories, as the Fed resorted to a series of deep rate cuts to get the U.S. economy out of recession 10 years ago. I
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