Investment Committee Strategies Post-Fed Rate Cut

The Investment Committee is reevaluating stock strategies after the Federal Reserve’s decision to cut interest rates last week. This shift aims to stimulate economic growth, prompting discussions on whether to invest in growth stocks or consider defensive positions amid potential market volatility.

Market Reactions and Projections

Following the rate cut, analysts report a 2% increase in major stock indices, reflecting investor optimism. However, concerns linger about inflation, with rates currently at 5.4%. The Committee is weighing potential shifts in sector allocations to navigate these economic conditions effectively.