The Federal Reserve cut interest rates by 0.5% on Tuesday, as stocks fell 9% from their all-time high set two weeks ago. It was the first emergency rate cut since the financial crisis.
The last emergency rate cut happened in October 2008, when stocks were also falling. But as you can see from today’s chart, the 0.5% rate cut in 2008 did little to soften the blow…
Just like the last crisis, Tuesday’s rate cut does not guarantee we’ve seen the bottom of this correction.
– Houston Molnar
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