Markets Hinge on Powell Emulating Greenspan to Avoid a Recession
- Traders are optimist that the US will dodge a recession
- Presidential election could upend historical easing trends
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Traders are harking back on 1995, when Alan Greenspan led the Federal Reserve in pulling off a rare soft landing, for a playbook on trading the first interest-rate cut in four years.
Like nearly three decades ago, bonds and stocks are rallying ahead of a critical Fed meeting. But this time, the central question for Chair Jerome Powell is which approach — reducing rates by 25 basis points or 50 basis points — is most beneficial for the US economy.