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US Fed rate cuts after long pauses have been good for stocks
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Over the past 50 years, when the Fed has started to cut rates after taking a pause of at least six months, the stock market has nearly always been captivated.
PHOTO: BLOOMBERG
Jeff Sommer
Timing is everything. After a nine-month pause, the Federal Reserve decided on Sept 17 that the time was right to resume cutting interest rates.
The stock market has been eagerly anticipating the Fed’s rate action, and for good reason. History suggests that what the Fed has just done will be auspicious for stocks.
