Four reasons why the US Fed's 25 bps rate cut assumes significance

With the US-China trade standoff still to be resolved and with Brexit also in limbo, a cut in rates should help to assuage sentiment

The rate cut by the US Federal Reserve (US Fed) is significant for four reasons. The first is that it was widely expected and hence was a not a surprise. In a way, it is a victory for President Donald Trump (the $1 trillion tax cut has not quite worked?). The second is that it comes after 10 years, which is a fairly wide hiatus and could be the beginning of another rate cut cycle. The third is that the cut has been invoked at a time when there is no recession or any sign of it, and even though