First Fed rate cut since 2008 fails to ignite markets

Is Fed losing its independence?

The central bank trimmed interest rates to a range from 2.25% to 2% in a widely expected moved, following support from eight of its policy committee members to cut, while two were against. However, the move failed to buoy markets. The S&P 500 closed the day 1.1% lower at 2,980 points, while the Nasdaq and the Dow Jones are both down 1.2%. According to The Times, this reluctance from markets comes after Fed chairman Jerome Powell said: "This is not the beginning of a long series of rate cuts. You would do that if you saw real economic weakness. That's not what we're seeing." Accordi...