Hey, friends, I have big news for you! There is a surprising movement from the Federal Reserve - they are not in agreement on whether to cut interest rates sharply!
Just this morning, the Federal Reserve released the record of the September meeting to discuss interest rates. It mentioned that not everyone agreed to the sudden rate cut last time. Some people think that when it comes to rate cuts, don't take too big steps, take it steady, and cut 25 points is enough, which is similar to what everyone guessed.
However, there is another group of people who advocate a larger cut, 50 points directly. Why? Because they think that while controlling price increases, more impetus should be given to the economy and job seekers to make the job market prosperous.
As for the opposition, they are considering not to scare the market, take it slow, 25 points each time, so that the Federal Reserve can also adjust while observing the economic situation, which makes the policy appear orderly and gives people a sense of security.
As soon as this meeting was over, everyone began to think about what the Federal Reserve will do in November. Combined with what Powell said before and the recent job numbers, the market seems to believe that the rate may only drop by 25 points in November.
Interestingly, after this news came out, the stock market did not fall but rose instead. The S&P 500 hit a new high and the Dow Jones Index is about to reach its previous peak. I think the logic behind this is that although the September rate cut decision is controversial, it still shows that the Federal Reserve is still on the track of rate cuts and has not deviated. This is a positive signal for the stock market.
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