It took a while to get here, but the Fed finally cut interest rates last week. U.S. and European share markets reacted positively to the FOMC policy directive for a 50 bps Fed Funds rate cut. That was last week’s main event. Our Chief Equity Strategist and Economist, John Blank, is here with some analysis now.
1. Why 50 basis points and not a 25 basis point cut?
2. How consequential was this move in the overall scheme of things?
3. Which areas of the economy will be impacted by it?
4. How do you think this will impact the future path of U.S. inflation?
5. So, with this cut, has the Fed actually won the war on inflation here?
6. You’ve written recently about a “Soft Landing” in the economy. Will this rate cut help with that?
7. Does this alter the Fed’s policy outlook?
8. How might this affect the policy of other central banks globally?
9. Volatility in the market has marked September. Do you see investors less on edge in the weeks ahead because of this U.S. rate cut?
10. A few Strong Buy stocks you’re watching include Takeda Pharma TAK, Naspers Ltd. NPSNY and Packaging Corp. of America PKG.
Our Chief Equity Strategist and Economist, John Blank, on the Fed rate cut and
inflation. With John, I’m Terry Ruffolo.
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