The equity markets are all up on the heels of the Fed’s aggressive interest rate cut.
The Fed cut interest rates by 50 basis points. By the time the decision came down, the markets were expected a 25-point cut.
It is the first cut since the Fed began raising rates in early 2022, in an effort to cool inflation.
While inflation is still above the Fed’s target of 2%, Chairman Jerome Powell said that the economy is strong, but he admitted he should have cut by 25 points in July, which is why he cut 50 points yesterday.
Higher borrowing costs have plagued farmers since Powell began the rate hike campaign.
Yesterday’s cut was the first rate cute since 2018. Farm economists say that there could be as many as 200 basis point cuts over the next couple years.
