The Federal Open Market Committee (FOMC) has lowered interest rates by 25 basis points, a decision anticipated by market participants. This move aligns with the committee's goal of reaching maximum employment and maintaining a 2% inflation target. Following this decision, the odds of a subsequent 25bps cut in December have increased to 66%, as per CME Group's federal funds futures markets data. The FOMC's forward guidance remains unchanged, indicating a stable outlook as they assess incoming data and evolving economic conditions. Market analysts suggest that this announcement will likely lead to continued mild gains in stocks, driven by cyclical sectors such as industrials and financials. Despite the cut, expectations for a year-end rally persist, suggesting stability in the financial markets amidst these adjustments.

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