The Fed Is Expected to Cut Interest Rates. The Stock Market Usually Does This Next (Hint: It May Surprise You)

Federal Reserve policymakers have lowered the target federal funds rate 55 times since 1990. Investors are usually excited by the prospect of lower rates because consumers and businesses spend more money when the cost of borrowing drops, which theoretically leads to more robust economic growth and stronger corporate financial results. But hoping for rate cuts is somewhat paradoxical.The Federal Open Market Committee (FOMC) is a 12-member group that meets eight times per year to review economic conditions an ...