Just in today, while the high spirits are up and the markets are up-per, The FOMC added more stimulus to the post election rally by cutting interest rates.

The rate cut

The new target is now 4.5%-4.75, a 25 basis point reduction from last meeting’s target. This signals a shift in approach and complete sentiment turnaround as Jerome Powell mentioned that he ‘feels good’ about the economy in his speech today. He sited the drop in inflation (7% -2.1%) and the strong economy as worthy reasons for the rate cut.

And then ?

But that’s not all the rizz, He replied with a ‘no’ when a reporter asked him if he would resign if the 45th & 47th President Trump asked him to. Guess the economy isn’t the only thing he can put a stop.

What’s next for the FED

Powell also signaled that a pause is ahead as the Fed stays steadfast on their goal of bringing inflation to 2% while achieved maximum employment. He also attributed the job market softening to the terrible hurricanes in October.