Rate cuts and stimulus bolster markets to new highs
In September 2024, financial markets responded positively to the U.S. Federal Reserve's (Fed) unexpected 50 basis point rate cut and China's ambitious stimulus package aimed at revitalizing its economy. The Fed's decision signals a proactive approach to support growth amid easing inflation, potentially also boosting U.S. equities in the coming months. Meanwhile, China's measures to lower reserve requirements and interest rates on mortgages are intended to stimulate consumer spending, creating a more favorable outlook for global markets despite ongoing inflation concerns.
