The U.S. stock market responded well to the aggressive interest rate cut on Thursday. The Federal Reserve lowered the interest rate by 0.5%. They are expected to lower it again in the coming months, the next cut coming in November.
The Dow Jones Industrial Average jumped over 400 points on this news and other indexes popped too. Not to be outdone gold, silver, and Bitcoin prices surged.
This is the first rate cut since 2020. In early 2022, when rates were near 0, the Fed raised rates 11 times in 16 months and then left it unchanged for more than a year. Fed Chair Jerome Powell says that he really wants inflation to go below 2%. We’d all like that!
The job market is dropped and home sales are down too.
