Federal Reserve Chair Jerome Powell doesn’t see the danger of an financial downturn being “elevated” following the super-sized lower.

“I do not see something within the economic system proper now that means that the chance of a recession, sorry, of a downturn, is elevated,” he mentioned.

“I do not see that,” he continued. “You see development at a stable fee. You see inflation coming down. You see a labor market that is nonetheless at very stable ranges. So, I do not actually see that now.”

— Sean Conlon

Federal Reserve Chair Jerome Powell doesn’t count on the period of low-cost cash to return.

“Intuitively, most — many, many individuals anyway — would say we’re in all probability not going again to that period the place there have been trillions of {dollars} of sovereign bonds buying and selling at adverse charges, long-term bonds buying and selling at adverse charges,” he mentioned.

“My very own sense is that we aren’t going again to that,” Powell added.

He feels the impartial fee is probably going considerably greater than it was again then, though he doesn’t know but how excessive it’s.

— Michelle Fox

The Fed’s aim now could be to maintain inflation secure whereas concurrently making certain jobless charges do not tick greater, based on Fed Chair Jerome Powell.

“We’re attempting to realize a scenario the place we restore worth stability with out the type of painful enhance in unemployment that has come generally with disinflation,” he mentioned within the post-meeting press convention.

Powell added that traders ought to take the Fed’s 50 basis-point fee lower as an indication of its “robust dedication” towards reaching that aim.

— Lisa Kailai Han

Regardless of one dissenting vote on the Federal Reserve’s determination to chop rates of interest by 50 foundation factors on Wednesday, the central financial institution was largely on the identical web page in regards to the determination, based on Federal Reserve Chair Jerome Powell.

“There was numerous dialogue backwards and forwards, there was additionally broad assist for the choice that the committee voted on,” Powell mentioned.

“There’s a dissent, and there is a vary of views, however there’s really numerous frequent floor as nicely,” he added.

— Brian Evans

The labor market is in stable situation and it’s the Federal Reserve’s intention to maintain it that approach with Wednesday’s fee lower, Federal Reserve Chair Jerome Powell mentioned.

“The U.S. economic system is in fine condition. It’s rising at a stable tempo. Inflation is coming down,” he mentioned.

— Michelle Fox

Federal Reserve Chair Jerome Powell mentioned the central financial institution will not be in a rush to ease coverage, based on its projections.

“There’s nothing within the SEP (Abstract of Financial Projections) that means the committee is in a rush to get this performed,” Powell mentioned in a press convention. “This course of evolves over time.”

The so-called “dot plot” indicated that 19 FOMC members, each voters and nonvoters, see the benchmark fed funds fee at 4.4% by the top of this yr, equal to a goal vary of 4.25% to 4.50%. The Fed’s two remaining conferences for the yr are scheduled on Nov. 6-7 and Dec.17-18.

By 2025, the central financial institution forecasts rates of interest touchdown at 3.4%, indicating one other full proportion level in cuts. By 2026, charges are anticipated to fall to 2.9% with one other half-point discount.

— Yun Li

The Federal Reserve lower rates of interest by a half-percentage level on Wednesday, however traders shouldn’t assume it’s going to proceed at that tempo going ahead.

“We have waited. And I feel that persistence has actually paid dividends within the type of our confidence that inflation is transferring sustainably below 2%, so I feel that’s what permits us to take this robust transfer at this time,” Fed Chair Jerome Powell mentioned Wednesday. “I don’t assume that anybody ought to have a look at this and say, ‘Oh, that is the brand new tempo.'”

“I feel we will go fastidiously assembly by assembly, and make our selections as we go,” he mentioned.

— Sarah Min

Federal Reserve Chair Jerome Powell mentioned the U.S. labor market is at the moment “fairly shut” to most employment however reiterated that the central financial institution was conscious of indicators that job development has cooled.

“Clearly payroll job creation has moved down over the previous few months, and this bears watching,” he mentioned.

— Jesse Pound

The Federal Reserve kicked off its rate-cutting marketing campaign Wednesday afternoon with a half-percentage-point discount. However some traders imagine the U.S. central financial institution jumped the gun with a fee lower that was too huge, too quickly for the present backdrop.

“Latest financial information suggests the economic system continues to be comparatively robust in comparison with different easing durations with unemployment at 4.2%, greater yr over yr however at a stage that alerts full employment, and GDP increasing at a 3.0% annual fee as of Q2 2024,” mentioned Philip Straehl, chief funding officer of the Americas at Morningstar Wealth. He famous that half-point cuts “have been uncommon in latest many years,” including that they have been used throughout emergencies, such because the onset of the Covid-19 pandemic in March 2020 and in 2008 throughout the international monetary disaster.

Straehl added that this extra aggressive discount signifies that the Federal Reserve “has gotten comfy that the downward traits in inflation are sustainable” and is now redirecting its focus to pulling off a mushy touchdown.

— Lisa Kailai Han

Powell mentioned in his opening assertion that the lower was a “recalibration” for the central financial institution and didn’t decide to related strikes at every upcoming assembly.

“This recalibration of our coverage stance will assist preserve the energy of the economic system and the labor market, and can proceed to allow additional progress on inflation as we start the method of transferring towards a extra impartial stance. We aren’t on any preset course. We are going to proceed to make our selections assembly by assembly,” Powell mentioned.

— Jesse Pound

A key measure of the tempo of worth will increase will present inflation fell to a 2.2% fee in August, Fed Chair Jerome Powell mentioned Wednesday.

The central financial institution chief mentioned the non-public consumption expenditures worth index acquired nearer to the Fed’s 2% aim, having been at 2.5% in July. The Bureau of Financial Evaluation is not going to launch the ultimate PCE quantity for August till late September.

“Our affected person method over the previous yr has paid dividends. Inflation is now a lot nearer to our goal, and we now have gained better confidence that inflation is transferring sustainably towards 2%,” Powell mentioned in his postmeeting press convention.

— Jeff Cox

Whereas the Federal Reserve could wish to begin its rate-cutting cycle with out creating an asset bubble, 50 foundation factors “might need been too aggressive,” mentioned Scott Helfstein, head of funding technique at exchange-traded fund agency International X.

“There are usually not many indications that the economic system is slowing in the newest numbers,” he mentioned. “A bigger lower in all probability was not wanted out of the gate, however that ought to assist risk-on asset allocation.”

“This can be one of the anticipated and telegraphed [starts] to a fee lower cycle in years,” he added.

— Michelle Fox

The Federal Reserve could have “jumped the gun” by dropping rates of interest 50 foundation factors, mentioned Nancy Tengler, CEO and chief funding officer of Laffer Tengler Investments.

The economic system is slowing however nonetheless robust, she mentioned.

“Unemployment could certainly rise however we aren’t seeing layoffs — JOLTs nonetheless a really giant quantity, nicely above pre-pandemic ranges,” Tengler mentioned. “My criticism of the Fed has been a myopic concentrate on backward-looking information. This seems like that. A single weak employment report and right here we’re.”

— Michelle Fox

The Federal Open Market Committee determination to decrease its benchmark fee by 50 foundation factors did have one public dissent.

Fed Governor Michelle Bowman advocated for a 25 foundation level fee lower, based on the coverage assertion.

Bowman joined the Board of Governors in 2018. She mentioned as not too long ago as July that an additional rate hike could also be wanted if progress on inflation stalled.

— Jesse Pound

The Federal Reserve’s updated policy statement mentioned job features have “slowed,” a change from earlier wording that they’d “moderated.” Nonetheless, the assertion didn’t embody any further language about financial development issues.

On inflation, the assertion now says “the committee has gained better confidence that inflation is transferring sustainably towards 2 p.c.”

Take a look at the total modifications to the assertion here.

— Jesse Pound

The S&P 500 and the Dow Jones Industrial Common touched contemporary data following the Federal Reserve’s transfer to chop charges by 50 foundation factors.

At its excessive, the Dow jumped to 41,981.97, up greater than 375 factors. The S&P 500 reached 5,689.75, leaping 0.98% for a brand new document.

The most important averages took again a few of their features shortly after as the large lower raised issues in regards to the economic system.

— Darla Mercado

With Federal Reserve fee cuts doubtless imminent, traders ought to take advantage of this “golden age of mounted earnings” now, based on Rick Rieder, BlackRock’s international chief funding officer of mounted earnings.

He believes there’s a shift coming to the market, the place equities will do no higher than “OK” and tech shares will now not benefit from the “fever pitch” they’ve had. As a substitute, traders can purchase yield “and simply watch it do its factor,” he mentioned.

“The thought of, ‘Gosh, I can lock in for 3 to 5 years — and you do not have to exit to 30 years — I can lock in these yields for the following three to 5 years.’ I feel it is a fairly compelling proposition,” mentioned Rieder, who manages the BlackRock Flexible Income ETF (BINC).

To seek out out the place Rieder is investing proper now, read the full story here.

— Michelle Fox

The most important averages flickered close to the flatline because the Federal Reserve’s fee determination approached. As of 1:39 p.m. ET, the S&P 500 and the Nasdaq Composite have been up practically 0.1%. The Dow Jones Industrial Average climbed about 28 factors, or simply shy of 0.1%.

Treasury yields inched up, with the speed on the 10-year note buying and selling at about 3.67%, reflecting an almost 4 foundation level leap. The 2-year Treasury yield added about 5 foundation factors to commerce at 3.64%.

— Darla Mercado

The Federal Reserve’s excessive rate of interest regime — with the present goal vary of 5.25% to five.50% — rewarded traders who stashed money into cash market funds and high-yield certificates of deposit, however that celebration is about to finish.

Excessive yields on money are set to come back down as soon as the Fed dials again charges, that means traders ought to redeploy a few of that cash into bonds with better length.

Intermediate-term bonds enable traders to lock in at this time’s greater yields whereas mitigating publicity to dramatic worth swings tied to rates of interest.

CNBC Professional subscribers can read the full story here.

— Darla Mercado

With the Federal Reserve anticipated to make its first rate of interest lower in 4 years Wednesday, it’s time to try how the inventory market carried out at first of prior easing cycles.

What the inventory market did traditionally after the primary Fed fee lower depended largely on the economic system, historic information exhibits. In complete, throughout all cycles, the S&P 500′s efficiency within the aftermath of the primary lower was largely optimistic however with some huge misses when the economic system turned down.

CNBC Professional subscribers can read the full story here.

— Sarah Min

There are just a few high-dividend shares — together with a number of vitality names corresponding to Exxon Mobil and ConocoPhillips — with robust upside potential that traders can faucet into because the Federal Reserve is predicted to start slicing rates of interest.

Decrease charges ought to make the yields for dividend shares much more engaging, lifting the group. These shares will also be used as a dependable hedge towards any financial slowdown in case central bankers find yourself being behind the curve on fee cuts.

Utilizing the CNBC Professional Inventory Screener software, we looked for shares with a dividend yield above 3% and a low debt-to-equity ratio below 60%. They’ve huge payouts and are low debt hundreds, that means they need to be capable to preserve paying that dividend. They’re additionally poised to see 10% or extra upside, per analysts.

Click on here to view the outcomes on CNBC Professional’s Inventory Screener software and to make your personal screener. Learn the full story in CNBC Professional.

— Pia Singh

Many traders are betting that the Federal Reserve will be capable to stave off a recession because it eases financial coverage from present ranges.

In opposition to this backdrop, CNBC Professional screened for shares which have performed nicely when the Fed cuts charges with no recession. A number of the names that made the lower are Nike, Amgen and UnitedHealth.

CNBC Professional subscribers can learn the total list here.

— Fred Imbert

Merchants are eagerly awaiting the Federal Reserve’s fee determination — and the conclusion of the central financial institution’s two-day assembly guarantees to be riveting.

The Fed is predicted to make its first fee lower since 2020, however markets are cut up on whether or not policymakers will trim by 25 foundation factors or 50 foundation factors. One foundation level is the same as one one-hundredth of a p.c. At present, the Fed’s goal vary for charges sits at 5.25% to five.50%.

Wall Avenue may even delve into the Fed’s “dot plot,” the place policymakers share their expectations for charges over the following few years. On the conclusion of this assembly, the central financial institution officers may even challenge their Abstract of Financial Projections, which incorporates forecasts for gross home product and inflation.

Read more from CNBC’s Jeff Cox on what investors can expect from the Fed.

— Darla Mercado

The Federal Reserve is predicted to make its first lower to rates of interest on Wednesday after greater than two years of tight financial coverage. The central financial institution’s goal fee vary at the moment sits at 5.25% to five.50%.

Greater charges have been robust on debtors, with the speed on the 30-year mounted mortgage rising to six.12% as of the week of Sept. 13, based on Mortgage Information Day by day. That’s up from 4.29% throughout the week of March 11, 2022, simply previous to the Fed kicking off its first hike.

House fairness loans have additionally develop into costlier, with charges rising to eight.49% as of final week, in comparison with 5.96% again in March 2022, based on Bankrate. Bank card rates of interest have additionally jumped greater than 400 foundation factors because the Fed began its fee will increase, rising to twenty.78% as of final week, Bankrate discovered. One foundation level is the same as one one-hundredth of 1 p.c.

The Fed’s tight coverage has supplied a silver lining to savers, nevertheless. The annual proportion yield on a five-year certificates of deposit has jumped to 2.87%, up from 0.5% in March 2022, based on Haver. Yields on cash market funds have additionally jumped, sitting at 0.46% final week, versus the 0.08% paid simply earlier than the Fed started tightening coverage in March 2022, Haver discovered.

— Darla Mercado, Nick Wells

Within the hours resulting in the Federal Reserve’s fee determination, traders stay cut up on the extent to which policymakers will lower charges.

Fed funds futures buying and selling suggests a 55% chance that central financial institution officers will dial again charges by 50 foundation factors, based on the CME FedWatch Tool. In addition they indicate a forty five% likelihood of the Fed decreasing charges by 25 foundation factors. At present, the Fed’s goal fee vary is 5.25% to five.50%. One foundation level is the same as one one-hundredth of a p.c.

Traders ought to watch what they need for, based on Aditya Bhave, senior U.S. economist at Financial institution of America. The agency anticipates a 25 foundation level lower on Wednesday, warning {that a} 50 foundation level lower may in the end be a worrisome signal.

“Threat property would possibly initially rally on the again of this dovish shock,” Bhave wrote Wednesday. “However we would warning traders that the act of slicing by 50bp means the Fed is much less assured a couple of mushy touchdown.”

 — Darla Mercado