- The Fed cut interest rates to 4.75-5.00%.

- The cut is the first in four years after holding rates at a 20 year high for a year.

- Two year treasuries fall by 10bps following the decision.

- Policymakers boost their expectations for unemployment to 4.4% at year end.

Isaac Stell, Investment Manager at Wealth Club

"The Federal Reserve has entered the race at pace, opting for the jumbo option, cutting headline interest rates by 0.50%. This was the first cut to interest rates in 4 years.

Despite there being no significant economic woes on the radar, policy makers have decided to get ahead of the curve as recent payroll reports have shown a gradual slowdown in the jobs market.

This cutting cycle is likely to be a marathon and not a sprint however with a total of 100bps of cuts priced in for the year, likely two further cuts of 25bps, and 100bps more next year. The market was calling for it, and the Fed has delivered. Many may be left wondering what the Fed sees on the horizon to prompt such a bold move."

Ends

For further information contact:

Jo Thorne: jo.thorne@wealthclub.co.uk

Wealth Club

The aim of Wealth Club is simple. To provide high net worth individuals and sophisticated investors with clear, impartial and well researched information on investment opportunities not typically available through mainstream stockbrokers or financial advisers. Wealth Club was set up in February 2016 and is now the largest non-advisory broker of tax efficient investments such as VCTs, EIS and Inheritance Tax Portfolios. Since launch 11,500 clients have invested more than £1.375 billion through its platform. Wealth Club targets commercially compelling, high potential and high growth companies to back. In 2023, over 40% of Wealth Club's direct investments in private companies were oversubscribed.