How Will the Markets Respond to the Fed's 50 Basis Point Cut?

Today the Fed cut interest rates by fifty basis points, lowering the Fed Funds target range to 4.75% to 5%.  This was a very interesting move for a variety of reasons – some obvious and some not so obvious.  Aside from being the first rate cut by the central bank since March of 2020, it was also a very aggressive move that didn’t make sense to most top analysts.  Yes, expectations were somewhat divided about whether the Fed would go with a half-point cut or a quarter-point cut, but almost no economists expected the larger rate cut.