The Fed’s rate cut and implications for investors

At the much-anticipated US Federal Reserve meeting on 18 September 2024, the monetary policy easing cycle finally began in the US with an announcement of a 50 basis point rate cut. 

In this episode of the Beyond Markets podcast, David Kohl, Chief Economist at Julius Baer, and Mischa Anand, Julius Baer’s Head of Advisory in Zurich, talk to Helen Freer about the significance of the Fed’s latest interest rate decision, what it means for the economy and the implications for investors.

00:39 – Introduction to the topic and the speakers
01:10 – Was a 50bp cut by the Fed appropriate?
04:06 – What does the rate cut mean for the economy and investors?
08:53 – Given a recession is not our base case, what is our macroeconomic outlook?
13:03 – What about the outlook for equities now that the Fed easing cycle has started?
15:06 - Does this mean we’re likely to see volatility ahead?
17:14 - Where does the Fed go from here?
20:08 – How significant is the start of the Fed’s rate-cutting cycle for other central banks and the rest of the world?
23:07 - Closing remarks

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What is Beyond Markets?

“Beyond Markets” by Julius Baer is a series featuring conversations with experts to share recent market developments, key insights, and strategic inputs from around the globe. In each episode, we cut through the noise to offer practical advice and macro research on today’s shifting economic and market landscape.
The information contained in this podcast is marketing material. Opinions expressed do not constitute independent financial/investment research, investment advice, or an offer to buy or sell securities by Julius Baer. Please refer to www.juliusbaer.com/legal/podcasts for important legal information prior to listening to this podcast.