Market views: How will the Fed’s rate cut affect assets?

The US Federal Reserve cut of the federal funds rate by 25 basis points on Wednesday (July 31) marks the first such reduction since the global financial crisis in 2008. Chairman Jerome Powell said the move, which reduced the target range to 2%-2.25%, was to "insure against downside risks" rather than signal the start of a monetary easing cycle. The central bank also hopes the cut will raise inflation to its 2% target. The Fed also accelerated its plan to stop shrinking its $3.6 …