Fidelity Institutional
September 20, 2024
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What Fed cuts have meant historically for the economy and the market

by Denise Chisholm, Director of Quantitative Market Strategy

The U.S. Federal Open Market Committee has cut the policy interest rate in September amid slowing inflation and a cooling labor market. As part of my work analyzing past trends to uncover insights for investors, I looked at how lowering rates might affect the economy, corporate earnings, and the stock market. The surprising answer: A rate reduction may not increase growth much—but could help sustain it.

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