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The US Federal Reserve has started a new cycle of rate cuts, sparking speculation about the impact on the economy. After holding rates at a two-decade high for over a year, the Fed lowered its benchmark rate to a range of 4.75% to 5.0% on Wednesday. Yardeni Research suggests that this move may be easing monetary policy into a potential economic boom. Unlike past easing cycles triggered by financial crises, this one comes as the economy is on solid footing. While the FFR futures market anticipates further cuts, historical data shows that previous cycles started from higher levels. The risk of lowering rates too quickly could lead to rapid economic growth and Inflation, reminiscent of the 1990s stock market boom.
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Emma Collins, graduated in Financial Economics from the University of Chicago in the USA in 2016. She has since worked at an asset management firm in New York, where she specializes in investment strategies and portfolio management. Emma has a keen interest in financial analysis and has published several articles in renowned financial journals. Her work focuses on providing actionable insights to investors, and she is known for her forward-thinking approach to managing financial portfolios.