With the labor market cracking, Jerome Powell said,
“The time has come for policy to adjust.”
Rate cuts incoming.
Upon hearing the news, risk assets like bitcoin and stocks jumped.
Lower rates = cheaper borrowing, which tends to boost spending and investment. It also tends to hurt the returns on savings and bonds.
The questions that remain are how big and how fast will the rate cuts come? Will they be enough (along with the ongoing fiscal dominance) to prop up markets if/when a
recession hits?