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A week after what turned out to be a landmark Federal Reserve monetary policy meeting, which set the stage for multiple interest-rate cuts starting as soon as next month, markets are still moving on every word from officials at the central bank. This helped the benchmark 10-year Treasury yield come to rest below 2%, which was quite a milestone. Stocks had a bad day Tuesday, as investors perhaps began to work out that assuming a sharp cut in rates assumes a sharp slowdown in economic activity. However, the most important market to watch is the one for currencies, for it is the dollar that holds the key to getting us all through the many political and economic risks for the rest of the year.
