Fed Cuts Interest Rates by Expected 25 Basis Points as S&P 500 Takes Aim at 6000

US central bank moved at a less aggressive pace than its initial kick-off cut to borrowing costs.

• The US Federal Reserve cut interest rates USINTR by an expected quarter point, continuing its efforts to reduce borrowing costs for businesses and consumers. With all 12 Fed voters backing it, the central bank approved the less aggressive measure compared with the kick-off slash of 50 basis points. The decision comes just as the stock market is riding high in the post-election party, which drove major indexes and Bitcoin to record highs.
• More on that, the S&P 500 index is chasing the 6000 milestone with just about 30 points left to cover. In other words, the broad-based index is looking to close Thursday’s session at a record high. It’s likely that it will be joined by the Nasdaq Composite and the Dow Jones Industrial Average — both are also breathing in the rarefied air of record highs. Bitcoin is floating somewhere in there, too — the OG coin shattered $76,000 on Wednesday.
• Back to the rate cut — markets had largely priced it in so the decision didn’t exactly boost the already upbeat mood on Wall Street. Long term, however, lower interest rates should help the economy to get into better shape, especially after last month’s dire jobs report with just 12,000 new workers joining in.