After the Fed’s 25bps Cut: Markets Weigh Labor Risks, Inflation, and Liquidity Bets

The Federal Reserve’s 25 basis point (bp) rate cut, its first of 2025, set the stage for weeks of market debate. While the move was widely expected, Chair Jerome Powell’s dovish tone at yesterday’s press conference and the Fed’s sharply divided dot-plot have left investors wondering what will happen next. Powell Signals a Risk Management Pivot Powell framed the rate cut as a risk management decision in his opening remarks, citing mounting cracks in the US labor market. Revised payroll figures showing 911,000 fewer jobs than previously reported, alongside rising long-term unemployment, point to a weaker foundation than headline numbers suggest source: https://beincrypto.com/feds-25bps-cut-labor-risks-inflation-liquidity-bets/