1. Fed cut rates by 0.25%, surprising markets positively. 2. Announcement to buy $40 billion in Treasury bills eases market conditions. 3. Fed forecasts U.S. economy growth at 2.3%, up from 1.8%. 4. S&P 500 poised to exceed 7,000, indicating potential strong market finish.
FAQ
Why Bullish?
The Fed's rate cut and monetary easing support financial market growth, as seen in past rate cuts leading to bullish market rallies.
How important is it?
Fed policies directly influence market liquidity and investor sentiment, impacting broader indices like the S&P 500.
Why Short Term?
Immediate market reactions to monetary policy shifts indicate short-term effects, similar to previous Fed actions during holiday seasons.