3 Reasons for Latest Fed Rate Cut: Efficient Capital Strategies’ Kuczmarski LIVE

3 Reasons for Latest Fed Rate Cut: Efficient Capital Strategies’ Kuczmarski LIVE

Rhode Island-based Jon Kuczmarski with Efficient Capital Strategies joined GoLocal News Editor Kate Nagle on GoLocal LIVE, where he spoke to the Federal Reserve cutting interest rates by a quarter percentage point on Wednesday. 

Kuczmarski said the cut was "97%" expected this week, and spoke to how the cut has been named the "insurance cut” — stemming back to the late’90s when Greenspan used the same term. 

“Jay Powell gave three reasons why he’s cut rates in 2019 — the first being a slowdown in the global picture — that’s why they’ve been adding accommodations,” said Kuczmarski. 

“The second was kind of funny — he mentioned trade policy [on Wednesday] — it was a subtle way of pointing it towards the White House. And the third happened to do with inflation being below the 2% target,” said Kuczmarski. 

“If there was one thing them of Wednesday’s press conference, inflation was mentioned like over 100 times by Powell — and you the Fed sets this 2% inflation goal. Currently, we’re at 1.5% so that’s justifying them acting,” he added.