US Stocks Rise as Fed Cuts Rates in Bid to Prevent Recession

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Fed,Rate Cut,Recession

US stock indexes edged higher after the Federal Reserve announced a 50 basis point rate cut, signaling the start of a series of cuts aimed at preventing a recession. The move comes as inflation has cooled and signs of a slowing job market emerge.

US stock indexes have edged higher as the Fed unveiled a 50 basis point rate cut, a move that’s expected to kick off a series of cuts to interest rates meant to prevent a recession.

Fed chairman Jerome Powell. Markets are hopeful the central bank can engineer a perfect landing for the US economy.Markets will be glued to the words of chairman Jerome Powell, who will speak at 4.30am AEST. The rate cut, the Fed’s first in more than four years, reflects its new focus on bolstering the job market, which has shown clear signs of slowing. Coming just weeks before the presidential election, the Fed’s moveThe Australian dollar jumped. It was 0.8 per cent stronger at 68.12 US cents at 4.20am AEST.The central bank’s action lowered its key rate to roughly 4.8 per cent, down from a two-decade high of 5.

 

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