(31 October 2019 ) DAILY MARKET BRIEF 2:Fed implements third rate cut, moves to neutral

The Federal Reserve cut interest rates by 25 basis points on Wednesday, lowering the target range to 1.5–1.75%. This was in line with expectations and left markets little changed. The Fed has now cut rates by a total of 75 basis points since July.

The FOMC statement had only subtle changes. They dropped the phrase about contemplating the future path of rates and also changed the phrase “act as appropriate” to “assess the appropriate.” These changes hint at a more neutral stance, while still leaving open the possibility of additional moves at any future meeting.