“What’s impressive is Chair Powell's communication, which effectively balances the urgency of returning to a neutral interest rate with the acknowledgment of a relatively stable economic state, despite some softness in the job market,” says Craig.
The size of the interest rate cut is perhaps less important than the end goal, says JP Morgan’s global market strategist, Kerry Craig.
Instead, the message from the US Federal Reserve (US Fed) in its Sept 19 decision to cut interest rates by 50 basis points (bps) is more about a cautious approach rather than immediate urgency, opting to front-load cuts within a relatively unchanged easing cycle.
