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US stocks are set to drop after the Fed’s ‘hawkish shift’ tempers hopes for further rate cuts

September 19, 2019

US futures fell while European and Asian equities rose on Thursday after the Federal Reserve trimmed interest rates to counter a global economic slowdown and President Donald Trump’s trade policy.

Fed Chair Jerome Powell cut the benchmark rate by 25 basis points to between 1.75% and 2%. “We took this step to help keep the US economy strong in the face of some notable developments and to provide insurance against ongoing risks,” he said, highlighting lackluster global growth and the impact of the US-China trade war.

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