🚨 Is the Fed Signaling a Market Crash? Why the 50 Bps Cut Feels Like 2007 All Over Again 🚨
On Sep. 18, the Fed made waves by slashing interest rates by 50 basis points—the biggest cut since 2020—bringing rates down to 4.75%–5%. 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 Fed’s aggressive rate cut has fueled speculation that it’s 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 growth—or is the Fed quietly warning of stormy times ahead?
