STORY: :: Lisa Bernhard, Reuters
:: Eric Diton, President & Managing Director, The Wealth Alliance
The Federal Reserve cut interest rates by half of a percentage point on Wednesday, kicking off what is expected to be a steady easing of monetary policy with a larger-than-usual reduction in borrowing costs.
“Bravo, Jay Powell!” cheered Diton, referring to Fed Chair Jerome Powell, who in prepared remarks said the decision reflects “our growing confidence” that the central bank can maintain “strength in the labor market” while moving inflation “sustainably down to 2%.”
So how will the Fed’s first rate cut in four-and-a-half years affect Diton’s job as a wealth manager?
Speaking with Reuters’ Lisa Bernhard, Diton said he has been extending bond durations “across the board” for months, in preparation for this moment.
“There are times in the bond market you have to protect [yourself],” he said, “and then there are times you’ve got to get…
