Emerging-Market Rally Tempered by Not-So-Dovish Fed Rate Cut
- Two policy makers voted against Wednesday’s quarter-point cut
- Powell said rate cut not the start of a lenghty easing cycle
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Emerging-market assets slid after the Federal Reserve said today’s rate cut was not the start of a long easing cycle.
Money managers and analysts said the Fed decision is slightly negative for developing-nation assets as traders may ease bets on further rate reductions in the U.S. Policy makers cut the upper bound of the Fed funds target rate to 2.25%, as expected.