SP500: The Fed Can't Get More Dovish Than This
Summary
- The Fed cut the Federal Funds rate by 50 basis points, and signaled an accelerated policy easing, which is usually associated with a recession.
- The accelerated policy easing is inconsistent with a soft-landing and policy normalization.
- The S&P500 lost the major catalyst to the upside as the Fed cannot get any more dovish than it is now, which limits further PE expansion.
Nathan Howard/Getty Images News
Fed cuts by 50bpt. Why now?
The Fed decreased the Federal Funds rate at the September meeting by 50bpt to kick off the easing cycle with "the bang".
Just a week ago, it was a near certainty that the Fed would
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
