Where Will Funds Flow After Fed Rate Cut?

As expected by the market, in the early hours of September 18th, the Federal Reserve announced a 25 basis point cut in the federal funds rate target range to between 4.00% and 4.25%. This is the first rate cut of the year by the Fed, coming after a 9-month gap since December last year. Despite the potential for further rate cuts later this year, there is a divergence of market views on the future path. Capital markets and gold did not see a significant rise after the rate cut, which was in line with expectations.