The Federal Open Market Committee cut interest rates by 25 basis points, setting a new target range between 1.5% and 1.75%. This consecutive third cut was largely expected by investors, analysts, and the broad financial market.
The Fed’s statement indicated a pause is ahead for interest rate easing, and the central bank also said the labor market “remains strong” and economic activity is “rising at a moderate rate.”
Speaking at a press conference, Fed Chair Jerome Powell said the current mid-cycle adjustment is likely at an end, and that the current monetary policy stance is “likely to remain appropriate.” Powell also emphasized that the current rate will be held as long as the economic outlook meets the Fed’s expectations.
Two FOMC voters, regional presidents Esther George of Kansas City and Eric Rosengren of Boston, dissented the decision; both maintained that the committee should have held rates at the previous benchmark.
The S&P 500 was trading at a new high this week ahead of today’s meeting. Stocks slipped slightly after the rate cut was announced but has since rebounded into the green; the Dow jumped over 100 points as of late afternoon trading.
Today’s rate cut announcement comes on the same day the Commerce Department said that U.S. GDP grew 1.9%, beating expectations but slightly down from the second quarter’s 2% pace. Investors are also awaiting key earnings reports from Apple (AAPL - Free Report) , Facebook , and Starbucks (SBUX - Free Report) Wednesday after the bell.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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The Federal Open Market Committee cut interest rates by 25 basis points, setting a new target range between 1.5% and 1.75%. This consecutive third cut was largely expected by investors, analysts, and the broad financial market.
The Fed’s statement indicated a pause is ahead for interest rate easing, and the central bank also said the labor market “remains strong” and economic activity is “rising at a moderate rate.”
Speaking at a press conference, Fed Chair Jerome Powell said the current mid-cycle adjustment is likely at an end, and that the current monetary policy stance is “likely to remain appropriate.” Powell also emphasized that the current rate will be held as long as the economic outlook meets the Fed’s expectations.
Two FOMC voters, regional presidents Esther George of Kansas City and Eric Rosengren of Boston, dissented the decision; both maintained that the committee should have held rates at the previous benchmark.
The S&P 500 was trading at a new high this week ahead of today’s meeting. Stocks slipped slightly after the rate cut was announced but has since rebounded into the green; the Dow jumped over 100 points as of late afternoon trading.
Today’s rate cut announcement comes on the same day the Commerce Department said that U.S. GDP grew 1.9%, beating expectations but slightly down from the second quarter’s 2% pace. Investors are also awaiting key earnings reports from Apple (AAPL - Free Report) , Facebook , and Starbucks (SBUX - Free Report) Wednesday after the bell.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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