Interest Rates May Do Something Not Seen Since 2020. A Big Move in the Stock Market Usually Follows.

Federal Reserve officials will meet on Sept. 17 and Sept. 18 to review economic data and adjust monetary policy as necessary. The market expects the committee to cut the benchmark federal funds rate for the first time since 2020, setting in motion a sequence of events that will lower other interest rates and encourage economic growth.Policymakers will most likely start with a quarter-percentage-point cut. However, inflation reached a three-year low in August, and unemployment hit a three-year high in July, which leaves room for a larger reduction in rates. Indeed, futures prices imply a 15% chance of a half-percentage-point cut at the September meeting.Historically, rate cuts have been a positive catalyst for the S&P 500 (SNPINDEX: ^GSPC), an index widely seen as the best barometer for the overall U.S stock market. Here's what investors should know.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool