Markets rally as the Fed meets to decide on what could be 2025's first interest rate cut

Core Viewpoint - The markets are experiencing an "everything rally" with record high stocks, subsiding bond yields, and a weakening dollar ahead of a widely anticipated U.S. interest rate cut [2][3]. Market Developments - A quarter-point Fed rate cut is fully priced in, with attention on the Federal Reserve's institutional standing amid increasing political pressure from the White House [3][6]. - Gold has reached a new record high, and China's offshore yuan has hit its highest level of the year following positive developments in U.S.-China trade talks [3][4]. Stock Market Performance - The S&P 500 has gained 12% year-to-date, while funds tracking the 'Magnificent Seven' megacaps have increased by 16% for 2025 [4]. - Big Tech stocks led Wall Street gains, with Tesla shares rising 3.6% after CEO Elon Musk purchased nearly $1 billion worth of stock, and Alphabet surpassing a $3 trillion market capitalization [6]. Political Influence on the Fed - The Senate's confirmation of Stephen Miran to the Fed's Board adds to the political pressure on the central bank, coinciding with President Trump's public call for a larger rate cut [6]. - The potential replacement of Fed Chair Jerome Powell by Trump next May further emphasizes the political dynamics affecting monetary policy [6].