Overview

• On Sept. 17 the Fed cut the policy rate by 25 basis points and signaled, via its median projections, quarter‑point reductions in October and December contingent on incoming data.
• Major U.S. indexes notched fresh record highs after the move, with cyclical shares, small caps and banks leading gains as recession odds eased, according to multiple market trackers.
• Average 30‑year mortgage rates slipped to 2025 lows in the mid‑6% range, though housing relief remains tied to Treasury yields rather than the overnight rate and may unfold gradually.
• Bond reactions were uneven, with managers at firms including BlackRock and PGIM favoring the 5‑ to 7‑year Treasury “belly” as a defensive sweet spot while longer yields firmed late in the week.
• Internal strains resurfaced as Governor Stephen Miran dissented for a 50‑basis‑point cut, inflation remains near 2.9% with labor growth slowing, and Chair Jerome Powell called the move a risk‑management cut ahead of a heavy slate of Fed speeches.