Tuesday's surprise interest-rate reduction by the Federal Open Market Committee doesn't mark the end of U.S. rate cuts by any means, Federal Reserve watchers say.
"Don't take today's move ... to mean that the FOMC is through," said Richard Moody, chief economist at Austin-based Mission Residential, in a note to clients. "We expect another funds rate cut at the scheduled January 29-30 meeting, with possibly more to come in the spring."
Investors seemed open to the idea of further reductions. Wall Street's key equity benchmarks battled back after suffering steep losses at the opening but remained broadly lower at midday. See Market Snapshot.
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