Analysis-Fed rate cuts could set stage for broader US stock gains
By Lewis Krauskopf
NEW YORK (Reuters) -The resumption of monetary easing by the U.S. central bank could add to and broaden Wall Street’s rally, investors say, though such a boost might already be priced in and could depend on whether lower interest rates help the economy avoid a significant downturn.
The Federal Reserve is widely expected to reduce its benchmark rate for the first time since December at the end of its two-day monetary policy meeting on Wednesday, in an effort to shore up a weakening labor market. The move is expected to kick off a series of reductions, with nearly six standard quarter-point cuts priced into markets by the end of next year.
STOCK GAINS TEND TO FOLLOW RATE CUTS, WITH EXCEPTIONS
