The U.S. stock market cooled the fed’s decision about the rate

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The U.S. Federal reserve pulled investors down to earth with his comments after the first 10 years of a lower interest rate. In fact, the reduction in one step, from 2.50% to 2.25% – not such a serious decision, and as we said earlier, it is rather indicative in nature than economically important. Moreover, in the course of his speech, the fed Chairman, the United States noted that this decision “opens a series of reductions in rates in the future, but merely indicates a slightly greater inflationary pressure.”
Powell focused on good macroeconomic indicators and sustainable growth of the economy (although slightly weaker than expected at the beginning of the year).
The US stock markets immediately reacted with decrease of main indexes, as participants expected, “the beginning of the easing cycle”, and received “a tip”. Stronger than all remained dissatisfied with Donald trump, who wrote in his Twitter that “Jerome Powell again failed, but at least finished quantitative easing”.
What does this mean for markets? Today futures on the US stocks returned to growth, because although the nominal, but the decline was. Much more important now to monitor macroeconomic performance. If the U.S. labor market tomorrow will be much stronger than forecasts, it will support the dollar, but stock markets are likely to “blush” from the understanding of the impossibility of further rate cuts. Naturally, the Russian market will exactly copy the movement of his “big brother”.
Dmitry Inogorodniy,
“International financial center”