Agency: The Fed's 50 basis point rate cut suggests unnecessary panic
Julian Howard, Chief Multi-Asset Investment Strategist at GAM Investments, stated that it is difficult not to detect a hint of unnecessary panic in the Federal Reserve's decision to cut interest rates by 50 basis points. He said that for many, this signifies the beginning of an interest rate cut cycle aimed at supporting the US economy as the inflation rate falls to the 2.0% target level. He also noted that the US unemployment rate remains at 4.2%, which is relatively low by the standards of the past 30 years, and the latest non-farm employment report was quite strong, with 142,000 new jobs added in August.
