The Federal Reserve cut rates by 50 basis points at its scheduled meeting, a larger move than most desks had penciled in and a signal that the committee is more concerned about growth than recent commentary suggested.
The statement walked through the usual reasons — softer hiring data, sticky-but-cooling inflation, and signs that the consumer is finally feeling the cumulative effect of two years of high rates. The press conference leaned dovish without being reckless.
Markets did what they do. Equities ripped through resistance, the dollar slipped against most majors, and gold made another run at the highs. Crypto, increasingly correlated with the long-duration risk trade, pushed higher on the headline.
The next print is a CPI release that will set the tone going into the next meeting. For now, the path of least resistance is up — and the Fed has just made it cheaper to stay long.
