Market soars after Fed finally cuts interest rate

The Federal Reserve cut interest rates on Wednesday, sending at least one stock market soaring.

On Wednesday, the Fed announced that it had decided to cut the federal funds rate by a quarter of a point, bringing the new rate range down to 4-4.25%. The committee made the decision to reduce the rate despite continued "uncertainty about the economic outlook."

'He should have cut them a year ago.'

While the committee apparently continues to worry about reportedly slowing "job gains" and a slightly higher unemployment rate, at least one market rallied in response to the news. The Dow Jones immediately jumped over 400 points, though those gains soon moderated. As of mid Wednesday afternoon, the NASDAQ and S&P were down.

Late last month, when Fed Chairman Jerome Powell teased a possible upcoming rate cut, President Donald Trump indicated that any such cut would be too little, "too late."

"He should have cut them a year ago," the president said at the time. "He's too late."

RELATED: Powell’s tight money policy is strangling the US economy

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Trump has also lately referred to the Fed chairman by the nickname "Too Late." "'Too Late' MUST CUT INTEREST RATES, NOW, AND BIGGER THAN HE HAD IN MIND. HOUSING WILL SOAR!!!" the president wrote on Truth Social on Monday.

Blaze News reached out to the White House for comment.

Blaze Media contributor Carol Roth told Blaze News that the rate cut is part of an ongoing "cautious approach" by the Fed.

"If you view the rate cut as long-awaited normalization of restrictive Fed policy, it’s good. If you view the rate cut as concern over jobs and the economy, it’s not so good," Roth explained.

"Based on early indications from the stock and bond market, it seems like they are taking it as slightly more of the latter, particularly given the softness in employment and the signals from Powell of additional rate cuts this year."

This is a developing story.

Editor's note: This article has been edited after publication to include a statement from Carol Roth.

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