“As usual, Powell has let us down.” That’s how President Trump responded to Federal Reserve Chairman Jerome Powell’s announcement yesterday that the central bank would implement the first such reduction since the 2008 financial crisis. It’s seen as a pre-emptive move against a weakening global economy and potential blowback from continuing trade turmoil. Powell said the quarter-percent cut wouldn’t lead to “a long series” of reductions, though he also didn’t rule out making another in the near future.
How are markets responding? The Fed’s mixed messaging appeared to rattle investors, as the S&P 500 closed down 1 percent — its biggest drop in two months.