In One Chart
A viral chart suggests a recession is coming after the Fed cuts interest rates — but don’t panic yet
The Fed is gearing up to cut rates soon, and that’s making some people nervous
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Following the Federal Reserve policy meeting on Wednesday, Chair Jerome Powell signaled that an interest rate cut was “on the table” for September. This would mark the first rate cut since the Fed began hiking rates in 2022 to combat inflation and it has left them at elevated levels for the past year.
The U.S. stock market rallied on the news with the Dow DJIA closing up 0.2% on Wednesday. The S&P 500 SPX closed up 1.6% that day, and the Nasdaq COMP was up 2.6%. Meanwhile, consumers breathed a sigh of relief knowing that credit card rates, auto loan rates and mortgage rates could be going down soon.
