What Fed Rate Cuts Mean for Investors

With last week’s 0.50% cut in the Federal Funds rate, in the rear view mirror, future rate interest rate decisions are now the focal point for markets. While the timing and size of future rate cuts are the subject of debate, why the central bank is cutting rates and how the full rate cut cycle might play out are far more important. This is because the implications are not as straightforward as they might seem, and market expectations have shifted dramatically over the past year. What should investors know about how rate cuts have historically impacted the economy and markets?