Fed Rate Cut Shows the Main Battle Against Inflation Has Been Won

From morningstar.com

After two years of high interest rates, Jerome Powell’s Federal Reserve is now pivoting to easing monetary policy. The Fed’s decision Wednesday implies that the main battle against high inflation has been won, and all that’s left is mopping up. The Fed reduced the federal-funds rate to 4.75%-5.00% in its September meeting, down from 5.25%-5.50% previously. Markets had been split on whether the Fed would opt for its normal 25-basis-point cut or go with a 50-basis-point cut. In the end, the Fed went with the larger cut of 50 basis points. But that doesn’t mean the Fed was trying to deliver a shock to the ... (full story)