At the close of its Federal Open Market Committee meeting, the central bank announced that it will lower its overnight target lending rate by 50 basis points. A majority of the market saw this as the likeliest outcome, though it surprised a smaller contingent who were pricing in a cut of 25 basis points.
Stocks initially rallied following the release before giving back some of the gains as it digested the news. Further price volatility appears likely in the days ahead, as the market parses the news and the accompanying speech by Jerome Powell. - John E. Seibert III
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