đš Is the Fed Signaling a Market Crash? Why the 50 Bps Cut Feels Like 2007 All Over Again đš
On Sep. 18, the Fed made waves by slashing interest rates by 50 basis pointsâthe biggest cut since 2020âbringing rates down to 4.75%â5%. This surprise move, following positive inflation news, has sparked concerns of hidden risks in the economy.
While consumer inflation eased to 2.5%, core inflation remains elevated, and job gains have slowed. The Fedâs aggressive rate cut has fueled speculation that itâs bracing for deeper economic issues.
What This Means for Markets:
Stocks: Initially rallied but ended mixed, signaling caution. The Dow fell 103 points after a 375-point surge, while the S&P 500 and Nasdaq closed down 0.29% and 0.31%.
Crypto: Bullish! The market cap surged 6.5%, with BTC breaking resistance to trade at $63,500 and ETH climbing to $2,430.
As liquidity floods back into the market, will this fuel growthâor is the Fed quietly warning of stormy times ahead?
