Fed cuts key interest rate by 0.75 points to improve the liquidity in the market and halting the the economy from getting into a recession. But This does nothing for the rising inflation seen at the moment. But the fed statement does mention the concerns of inflation, so its keeping an eye on the inflation. We may not expect such steep cuts in interest rate in future if inflation remains at current levels. The real rate of return currently is negative.
This is a link to the analysis video for Feds recent rate cut
and this one from Reuters
We are definitely going to see a fall in rate of interest in out saving and money market accounts, and an increase in gas prices. The gains in the stock prices may be temporary. The home prices are still not coming down where buyers would rush in to buy and put an end to the stalled housing market.
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