Economists: Market's Initial Indifference to Fed's Large Rate Cut May Be the Calm Before the Storm
Gold Finance reported that investors had expected the market to experience significant volatility after the Federal Reserve's substantial interest rate cut. However, the market remained remarkably calm. This tranquility, though, could quickly vanish. "I don't think this calm will last very long," said Brian Jacobsen, chief economist at Annex Wealth Management. He pointed to the stock market's reversal later that evening as a potential sign of weakness in the market, "unless we get some data that gives us a clear direction." Jacobsen stated that the market will be closely watching upcoming data releases, such as the initial jobless claims figures due out on Thursday. "The Fed is clearly playing catch-up and trying to make up for lost time with this recent rate cut," Jacobsen said.