The Federal Reserve cut interest rates today by 25 basis points (bps), following months of speculation about inflation, politics, and economic data. The move will likely boost markets' confidence and ... ...

Bob Michele, JPMorgan Asset Management global head of fixed income, reacts to the decision by the Federal Reserve's policy-setting Federal Open Market Committee to lower the benchmark interest rate by a quarter percentage point. ...

Group 1 - The Federal Reserve's decision to lower benchmark interest rates to a range of 4% to 4.25% has positively impacted the auto industry, leading to increased share prices for major car manufacturers [1] - General Motors and Ford Motor shares rose by 1.7% and 2% respectively following the Fed's announcement, indicating a favorable market response to the rate cut [1] - Lower interest rates are expected to stimulate new car sales, benefiting the automotive sector overall [1] Group 2 - Tesla stock experienced a slight decline of 0.1% after previously rising for six consecutive sessions, during which it gained approximately 22% [2]

Core Points - The Federal Reserve announced a 25-basis-point interest rate cut, marking the first reduction of the year, bringing the federal funds rate to a range of 4% to 4.25% [1] - The decision follows a period of economic uncertainty, with the Fed having kept rates unchanged during its first five meetings of the year [1] - Policymakers are facing challenges in balancing maximum employment and stable prices, with inflation remaining elevated despite a slowdown in hiring [2][3] Economic Data Monitoring - Economic data indicates a slowdown in hiring as businesses adjust to changes in trade and immigration policies, while inflation has trended higher due to tariff-related price increases [2] - The Federal Open Market Committee (FOMC) noted that job gains have slowed and the unemployment rate has risen, although it remains relatively low [3] Policy Decisions and Dissent - The FOMC's vote on the rate cut was 11-1, with only Fed Governor Jeffrey Miran dissenting in favor of a larger 50-basis-point cut [5] - Federal Reserve Chair Jerome Powell indicated that the focus will be on addressing whichever economic indicator—inflation or labor market—strays further from the targets [5] Political Pressure - The Federal Reserve has faced pressure from the Trump administration to cut interest rates, with President Trump previously threatening to fire Chair Powell [6] - Trump is also attempting to remove Fed Governor Lisa Cook over unproven allegations, which has been temporarily blocked by a court ruling [9] Leadership Changes - The FOMC meeting included a new member, Stephen Miran, who was confirmed to fill a vacancy following the resignation of former Fed Governor Adriana Kugler [10]

Federal Reserve Chair Jerome Powell is set to speak with reporters following the central bank's decision to deliver the first interest rate cut of 2025. Policymakers lowered rates by a quarter percentage point, bringing its benchmark interest rate to a range of 4%-4.25%. In the weeks leading up to the decision, analysts had been confident a rate cut was coming considering a slew of data pointing to a slowdown in the labor market. Most traders had expected the 25 basis point cut rather than a deeper reduct ...

By Sabrina Escobar CONCLUDED Fed Cuts Rates by a Quarter Point, as Expected, and Sees 2 More Cuts This Year Last Updated: 4 hours ago Miran Was the Sole Dissent, Opting for a Larger Cut Cryptocurrencies Data Magazine Markets Stock Picks Barron's Live Roundtable Barron's Stock Screen Personal Finance Streetwise Advisor Directory Stephen Miran earlier this month. (Getty Images) Newly installed Fed governor Miran was the only member of the Federal Open Market Comittee to vote against the decision to cut intere ...

Group 1: Market Reactions to Trade Deals - President Trump confirmed a deal with China allowing TikTok to continue operating in the US, leading to a 1.5% increase in Oracle's shares and a 5% jump in premarket trading [2] - India's textile sector saw significant gains, with Gokaldas Exports' shares rising 5.15% and Welspun Living's shares increasing by 3.46%, driven by optimism over a potential US-India trade deal [3] Group 2: Tariff Threats and Corporate Responses - The pharmaceutical industry faces ongoing tariff threats, prompting GlaxoSmithKline to announce a $30 billion investment in US research and development and manufacturing over the next five years, resulting in a nearly 2% increase in GSK's U.S.-listed shares [4] - Analysts noted that GSK's proactive investment positions the company favorably against potential sector-specific tariffs [4] Group 3: Digital Influence on Markets - President Trump's use of Truth Social to announce policies, such as the TikTok deal, creates immediate market reactions, highlighting the impact of social media on financial markets [5] - Trump also proposed shifting from quarterly to semi-annual earnings reports, a move that could simplify reporting for companies [6] Group 4: Broader Market Trends - The US markets showed mixed performance on September 17, with the S&P 500 up 0.04%, Dow Jones up 0.48%, and Nasdaq down 0.12%, reflecting cautious anticipation of a Federal Reserve interest rate cut [8] - Analysts believe the Fed's potential rate cut is a response to a weakening job market, influenced by Trump's tariffs, indicating a complex interplay between economic indicators and protectionist policies [9] Group 5: Overall Market Sentiment - The market operates in a state of volatility, with indices fluctuating between optimism over trade deals and concerns over tariff threats, necessitating agility from investors and companies alike [10]

Newly-installed Governor Stephen Miran was the only policymaker voting against the quarter-point move, instead advocating for a half-point cut.In an 11-to-1 vote signaling less dissent than Wall Street had anticipated, the Federal Open Market Committee lowered its benchmark overnight lending rate by a quarter percentage point. The decision puts the overnight funds rate in a range between 4.00%-4.25%.WASHINGTON – The Federal Reserve on Wednesday approved a widely anticipated rate cut and signaled that two mo ...

Federal Reserve Interest Rate Decision - The Federal Reserve is expected to cut interest rates on September 17, marking the first cut in nine months, with the last cut occurring on December 18, 2024, by 25 basis points [1] - Federal Chair Jerome Powell hinted at a potential rate cut during the Jackson Hole Speech on August 22, indicating that the baseline outlook and shifting balance of risks may warrant an adjustment in policy stance [1] Impact on Equity and Crypto Markets - Anxiety is prevalent in both equity and crypto markets as investors await the Fed's decision, with three distinct scenarios being considered [2] - A 50-basis-point cut would signal significant concern over slowing growth or financial system stress, potentially leading to a rally in crypto markets due to lower capital costs [3] - A 25-basis-point cut is the anticipated scenario, which would initiate a new cycle of easing, possibly diverting over $7 trillion in money-market funds into riskier assets [5] - If the Fed decides to keep rates unchanged, it could lead to a sell-off in stocks and cryptocurrencies, indicating ongoing inflation concerns [7] Cryptocurrency Market Reactions - A significant rate cut could lead to spikes in Bitcoin and Ethereum prices, with higher beta tokens like Solana potentially experiencing faster gains, although it may also create short-term volatility [4] - Analysts suggest that a gradual easing rather than a rapid cut would be more beneficial for the markets, with potential for Bitcoin to reach new highs [8] - The cryptocurrency space may see increased investments in yield-bearing tokens, DeFi platforms, and stablecoins as a result of lower yields in traditional markets [6] Market Sentiment and Analyst Views - Analysts from trading firm QCP note that Fed easing is generally supportive of risk assets, but caution that market strength may be tempered by ongoing inflation, deficits, and geopolitical risks [9] - As of the latest data, Bitcoin was trading at $115,589.87, reflecting a 1.27% increase over the past week, with the total crypto market cap at $4.02 trillion [10]

Market Overview - The S&P 500 Index is down -0.17%, while the Dow Jones Industrials Index is up +0.77%, and the Nasdaq 100 Index is down -0.80% [1] - Weakness in chipmakers, particularly Nvidia, which is down more than -2%, is impacting the broader market due to regulatory actions from China's Cyberspace Administration [2][11] - The overall market is negatively affected by the decline in major technology stocks, with Amazon, Tesla, and Meta Platforms all down more than -1% [12] Economic Indicators - US housing news showed weaker-than-expected results, with August housing starts falling -8.5% month-over-month to 1.307 million, below expectations of 1.365 million [3] - Building permits also fell unexpectedly by -3.7% month-over-month to a 5.25-year low of 1.312 million, against expectations of an increase [3] - MBA mortgage applications rose +29.7% in the week ended September 12, with refinancing applications up +57.7% [4] Federal Reserve Actions - The Federal Reserve approved a quarter-percentage-point rate cut and indicated two additional cuts are expected before the end of the year due to concerns over the labor market [1][5] - The market anticipates a total of about 70 basis points in rate cuts by year-end, with a focus on the Fed's new economic forecasts [5] Company-Specific Developments - Uber Technologies is down more than -4% following insider selling by CEO Khosrowshahi, who sold $28.6 million in shares [13] - Manchester United reported a Q4 loss and cut its 2026 revenue outlook, leading to a decline of more than -6% in its stock [12] - Roivant Sciences is up more than +12% after its drug met primary endpoints in a Phase 3 trial [14] - Workday is up more than +8% after an upgrade from Guggenheim Securities [14] - Walmart is up more than +2% following a price target increase from Bank of America [15]