History can be a good guide for the Fed's next move.
led the Fed to cut interest rates in short bursts in a bid to prop up the U.S. economy in the face of slowing investment and weak growth overseas in Canada and Japan.
In 1995 and 1998, these two most recent “mid-cycle adjustments,” the Fed slashed rates three times during both periods to successfully keep the economic expansion alive, driving the S&P 500 more than 20% higher in the following year,Today’s Fed is walking a similar line, having already cut rates twice this year in response to a global economic slowdown and
in U.S. economic data: GDP seems to be slowing, manufacturing has declined, and the most recent jobs and retail sales reports were both weak. , indicating that it will “act as appropriate” to sustain the U.S. economy’s “moderate rate” of expansion, against a backdrop of geopolitical tensions like Brexit and the trade war with China.that after another rate cut this week, that will likely be the end of the “midcycle adjustment” that Powell alluded to in July, when the Fed first cut rates.
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