Abstract：The Fed cut interest rates Wednesday for the first time in a decade. But stocks fell sharply following the announcement.
The Federal Reserve slashed borrowing costs Wednesday for the first time since the 2008 financial crisis, a move that has been priced into financial markets for months. But stocks fell sharply following the announcement.
The mood on Wall Street soured after Fed Chairman Jay Powell dimmed expectations for additional easing, dispelling the idea that Wednesday was the start of a “long series of rate cuts.”
Here's what Wall Street is saying about the decision.
The Federal Reserve slashed borrowing costs Wednesday for the first time since the 2008 financial crisis, a move that has been priced into financial markets for months.
But stocks fell sharply after the central bank announced it would lower its benchmark interest rate by a quarter percentage point to target range of between 2% and 2.25%. The mood on Wall Street soured after Fed Chairman Jay Powell dimmed expectations for additional easing, saying Wednesday wasn't the start of a “long series of rate cuts.”
The major US indices each shed more than 1%, with the Dow Jones Industrial Average and S&P 500 suffering their worst daily losses since May. The dollar jumped against a basket of peers, while Treasury yields fell.
Here's what Wall Street is saying about the decision.
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