To no one's surprise, the Federal Reserve cut interest rates on Wednesday by another quarter point for a third consecutive time this year, to a new range of 1.5-1.75%.
The economic community was mixed as to the need for another dose of monetary easing with the stock market making record highs. Chairman Powell correctly responded that it is Fed's job to support maximum employment and stable prices - rather than make policy - and that's exactly what the Fed is doing. In support, he highlighted record unemployment and inflation below the Fed's 2% target for healthy growth. Hard to believe this is the same Chairman Powell that was bent on raising rates late last year under similar economic circumstance.
So what does a third rate cut mean for you the investor? Maybe a lot! Let's discuss.