Fed’s Rate Cut Leaves Markets Guessing on Future Moves
The Federal Reserve delivered a quarter-point rate cut Wednesday, its third this year, but signaled uncertainty about further easing. Chair Jerome Powell emphasized the Fed's neutral stance, with the benchmark rate now at 3.5%-3.75%—a level neither stimulating nor restraining growth.
Divisions among policymakers loom as inflation remains stubborn. While officials projected just one more cut in 2024, economists caution this outlook hinges on incoming data and leadership changes. The labor market's trajectory will prove decisive.
Market reaction was muted as traders parsed Powell's noncommittal language. "We're well-positioned to adjust based on the evolving outlook," he stated, offering no clear forward guidance. This ambiguity leaves crypto and traditional assets vulnerable to shifting rate expectations.
