By James Ong, Director, Derivative Portfolio Management
As expected, the Federal Reserve (Fed) cut the federal funds rate band by 25 basis points from 1.75%-2.00% to 1.50%-1.75%.1 Changes in the text of the Federal Open Market Committee statement, as well as information provided in the press conference, indicate that the Fed believes it is done cutting interest rates unless economic conditions continue to soften. It has now cut interest rates three times this year, making this mini cutting cycle consistent with the shorter cutting cycles of 1996 and 1998. Fed Chairman Jerome Powell indicated