Locator: 49285ECONOMY.
The "Fed" cut "a quarter point."
"Everybody" expected that. Market indices unchanged after the announcement.
QE ends as of December, 2025.
But, but, but, but ...
- the Fed made the decision with very, very, very little data due to the government shutdown;
- what little data they had, the "Fed" suggested the economy is actually better:
- than that reported at the previous meeting;
- than what they expected.
So, the "Fed" cut rates even though Main Street is looking resilient and better than expected; and,
when Wall Street is frothy.
That suggests to me the "Fed" blinked. It suggests to me a "feel good" decision -- even if not necessarily needed, the "Fed" wanted to feel good going in to the holidays after playing Scrooge since last autumn (2024).
Great interview with former Fed board member.
Richard W. Fisher is the former President and CEO of the Federal Reserve Bank of Dallas, a position he held from 2005 to 2015. Richard Fisher self-identifies as having been a hawk during his tenure, more concerned with inflation than employment.
He says JPow has four more meetings. Unlikely that JPow will favor absolutely any more cuts. This is it folks.
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Market Reverses Gains For The Day
During the Q&A, JPow says a rate cut in December is not a given. Dow goes negative after being in the green all day.
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Earnings After The Close
SBUX: good
GOOG: incredibly good; share price surges. Cloud: 34% growth y/y.
MSFT: even better -- will explain later. Beats on top and bottom lines. Awesome. Significant drop in share price after earnings reported.
META: okay -- down significantly. Down 8%.
