The Federal Reserve cut interest rates by 25 basis points today, this is the first cut in over a decade. The Fed also decided to end their run-off of their balance sheet, in what has become known as quantitative tightening, QT. While Chairman Jerome Powell gave Wall Street what it was asking for, Wall Street is never satisfied and the markets sold off – with the major indices down 1%. This is on the back of Powell’s statements, where he claimed that this was an “insurance” cut to hedge against global uncertainties, and that moving forward, the FOMC will do what is necessary to “sustain” the economic expansion. However, he came up short when he did not explicitly note that this is the first of more rates cuts to come – what Wall Street was hoping to hear. It’s never enough for the addicts on Wall Street and while one down day does not make a trend, this is likely to set up as a, be careful for what you wish for situation. The Kapital News is predicting that this will be the beginning of a new easing-cycle and we will also not be surprised if there is another round or version of QE in the not too distant future. Stay diversified, stay vigilant, and stay with The Kapital News. #EndTheFed #WakeUpAmerica #Economy