The Federal Reserve implemented a 25 basis points rate cut, marking a cumulative reduction of 175 basis points since September. Current rates are deemed neutral, allowing for a careful observation of economic changes.
Chairman Powell explained that decisions will be made based on evolving economic conditions without indicating future rate changes. He emphasized that monetary policy adaption is a gradual process.
After Powell’s remarks clarifying the lack of immediate rate hike expectations, US stock indexes showed a strong rebound, reflecting trader confidence in the Fed’s focus on easing policies in future.
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