Market history · Central banks ·
The Fed pivots: the first cut since 2008
On 31 July 2019 the Federal Reserve cut its policy rate by a quarter point, to 2.00–2.25%, its first cut since the financial crisis. It cut again in September and October, ending the year at 1.50–1.75%, after having raised rates four times in 2018.
The Fed described the moves as insurance against global weakness and trade tensions. Equities rallied strongly, with the S&P 500 returning about 31% for the year.
The takeaway
Central-bank direction can reverse within months; positioning for one path is a risk.
This is a retrospective about a past event, provided for general information. It is not investment advice, does not describe RockLake's positioning at the time, and past performance is not a guide to future performance. Read the risk warning.