For subscribers

Market Watch

Global markets rally after rate cut, but risks lurk in the background

Sign up now: Get ST's newsletters delivered to your inbox

FILE PHOTO: Federal Reserve Board Chair Jerome Powell holds a press conference following a two-day meeting of the Federal Open Market Committee on interest rate policy in Washington, U.S., September 18, 2024. REUTERS/Tom Brenner/File Photo

The prevailing view is that the US Federal Reserve could slash by as much as 1.5 percentage points by the end of 2025.

PHOTO: REUTERS

Follow topic:

SINGAPORE - Global markets have rallied on the back of optimism that the US Federal Reserve’s

bigger than anticipated rate cut

of half a percentage point will engineer a soft landing for the world’s largest economy.

Historically, stock markets have performed well when the Fed cuts rates, provided the US economy was not in recession.

See more on