Fed cut 50 basis points to help small businesses: Michael Kantrowitz | Fox Business Video
Michael Kantrowitz, chief investment strategist at Piper Sandler, discusses the recent Federal Reserve decision to cut interest rates by 50 basis points. He characterizes this move as a measure to bolster confidence in the economy, particularly aiding small businesses that may benefit from lowered borrowing costs.
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The Fed's rate cut is expected to stimulate borrowing and investing, particularly in sectors that are sensitive to interest rates such as financials and consumer discretionary. Companies that rely on borrowing for expansion or day-to-day operations could see an upturn in performance as the cost of capital decreases, potentially leading to higher stock prices.
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