“A 25 basis point cut in October is a fait accompli,” said economist Sung Won Sohn, a professor of finance and economics at Loyola Marymount University in Los Angeles. “In the midst of a slowing job market, it is an insurance cut. Sohn said that by slightly lowering borrowing costs, the Fed is giving the economy more room to grow as lower rates can give a lift to business investment, hiring, and consumer spending on cars and other goods.
Source: Detroit Free Press
