The Fed is sending a message to the market: We’re almost done cutting interest rates

On By Littum

US stocks fell in the immediate aftermath of the latest Fed decision. In addition to announcing its latest rate cut, the central bank also released updated targets and a revised policy statement.

Together, changes in the Fed’s projections and a single, subtle shift in the language of its statement helped send a message to investors, according to Jochen Stanzl, chief market analyst at CMC Markets.

That message? We are almost done lowering the prices.

“There are two changes in what the Fed communicated in its press release. First, the Fed is no longer considering just lower interest rates, but the timing and magnitude of future rate hikes. And there was one FOMC member who voted against cutting interest rates. That, we’re seeing is clearly a signal that the Fed is almost done cutting rates,” Stanzl said in comments shared with MarketWatch via email.