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Podcast: Moneylife News Bites
Episode: Do Fed Rate Cuts Fire Up Stock Prices?
Description: Debashis Basu challenges the conventional wisdom that stock prices automatically rise when the US Federal Reserve cuts interest rates. Drawing on historical data and real-world examples, Basu reveals that the correlation between Fed rate cuts and market performance is weaker than many believe. He explores how other factors, like economic growth and corporate profits, play a far more significant role in determining stock prices, emphasizing that the Fed often follows the economy rather than leading it. Hosted on Acast. See acast.com/privacy for more information.