A widely anticipated Federal Reserve rate cut elicited a muted reaction across Wall Street, with stocks and bonds fluctuating after policymakers largely validated expectations for gradual easing.
The policy pivot took place as officials try to backstop labor-market weakness, marking a shift after worries about inflation kept them on hold for months. The S&P 500 swung between gains and losses. The yield on 2-year Treasuries was little changed. The dollar remained at lowest since 2022.
US policymakers slashed rates by 25 basis points Wednesday while penciling in two more reductions for this year. Officials said the unemployment rate had “edged up but remains low,” adding that “downside risks to employment have risen.”
Traders are now shifting their attention to Fed Chair Jerome Powell’s press conference.
