Matt Stroshane/Getty, Tyler Le/BI
Meanwhile, the stock market is loving this post-rate-cut environment.
Investors’ favorite trade over the past year-plus — artificial intelligence — was booming on Thursday. Shares of Nvidia, Broadcom, and ASML all surged. And the tech-heavy Nasdaq index finished the day up 2.51%.
Meanwhile, the S&P 500 and Dow Jones Industrial Average both closed at all-time highs.
The good times could keep rolling if past Fed policy is an indication of future returns. The central bank’s strategy looks awfully similar to its approach to avoiding a recession in 1995, according to one economist.
Back then, the Fed eased rates from 6% to around 4.75% over three years. Along the way it sparked an economic boom and sent the S&P 500 soaring 125%.
Meanwhile, the cut poses unique challenges for both presidential candidates.
Former President Donald Trump downplayed the cut as either a sign of how bad the economy is or an example of the central bank “playing politics.”
While Vice President Kamala Harris would normally celebrate the move as evidence of the economy’s turnaround, doing so risks backing Trump’s claim that it was a partisan move.
The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Hallam Bullock, senior editor, in London. Milan Sehmbi, fellow, in London. Amanda Yen, fellow, in New York.