This Week Major Event Recap : Rate Cut

The Federal Reserve has cut interest rates by 50 basis points in their first rate cut since March 2020
The long awaited "Fed pivot" has officially begun... By starting their monetary policy easing cycle with an aggressive 50 basis points rate cut it seems that the Fed decided to focus on the labor market part of their dual mandate rather than the inflation one...
Here's a summary of Fed decision:
1. Fed cuts interest rates by 50 bps for first time since 2020
2. Fed sees 2 more 25 basis point rate cuts in 2024
3.Fed governor Miki Bowman dissented in favour of a smaller 25 bps cut. It's the first dissent by a *governor* since 2005.
4. Fed gained "greater confidence" that inflation is moving to 2%
5. Fed will "carefully asses incoming data" and evolve outlook
6. Fed sees 100 bps of rate cuts in 2025 and 50 bps of cuts in 2026

This is a CLEAR Fed pivot and the Fed is signaling that they believe the disinflation trend remains in place but also that they now see making unemployment their top priority as the labor market has weakened. Their decision sounds almost like a risk management one.

(Initial) Market reaction >>>
-> The S&P 500 rises to a new all time high but the equity market reaction is rather mixed so far
->Yield Curve steepens with a modest yield rise on the long-end
-> The dollar weakens Gold and bitcoin rise