The Fed cut interest rates by 25 basis points yesterday.
The markets didn’t like that very much. They wanted 50 basis points and a promise to decrease further in the future.
Although the Fed did reference global concerns and slower business spending as concerns, they made no such promise.
The Fed continues to insist they are on no set course.
The Fed’s prepared statement noted that, “Information received since the Federal Open Market Committee met in July indicates that the labor market remains strong and that economic activity has been rising at a moderate rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low.”
That sounds more like a reason to hike rates rather than cut them, but the Fed sees something in their crystal ball they don’t like.