Under all the spotlight the US central bank did not invent and did everything analysts had expected, cutting interest rates by -0.25% to between 1.5% and 1.75% while indicating pause the dovish movement by removing the words “act as appropriate” from the text of the meeting, replacing it with a neutral “likely to remain appropriate”. It also indicating that now will be the decision based on economic data, speaking among the precautionary phase was over on the day when third quarter GDP of the world’s largest economy came out higher than expected at 1.9% compare with the anticipated 1.6%.
Photo by Neonbrand.
Delivering on the promise of a midcycle adjustment Jerome Powell seems to have already pleased investors, who pulled the US indices at the final trading time. However, the most reliable proof of market reaction will be in store for Thursday. Market sentiment can also be conditioned by rising Apple and Facebook shares after the iPhones maker and social media company beat forecasts for Q3 results.
