Investors worry Fed's rate cut might be a one-off
Wall Street's three indices and most Asian markets finish lower, but analysts say it's only a knee-jerk reaction
Singapore
THE US Federal Reserve has surprised few by delivering a 25 basis point cut - its first in 11 years - following its July meeting.
US investors were instead more bothered by the apparent hawkish tone in Federal Reserve chairman Jerome Powell's speech, in which he said that he viewed the rate cut as part of a mid-cycle adjustment rather than the start of a long easing cycle.
In response, Wall Street's three main indices finished at between 1.1 and 1.2 per cent lower on Wednesday.
Stephen Innes, managing partner at VM Markets, noted that as a whole, markets were treating Mr Powell's comments like the rate cut was a "one-and-done", but added that investors "need to pay attention to follow-up Fed communication if the central bank feels markets are misreading…
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