The US Federal Reserve recently announced a cut in interest rates, but the conditions and indications associated with this decision did not fully satisfy investors. This deduction made in rates could not meet the expectation of the relief that Wall Street and global markets had already set up.

Fed reduced the benchmark interest rate by 25 basis points. This step is considered important because the possibility of recession pressure on the US economy is continuously increasing. However, Fed Chair Jerome Powell made it clear that this cut is “limited” and whether there will be more rate deduction in the coming times, it would depend on inflation and employment data.

The biggest disappointment of investors was that Fed did not give “clear forward roadmap”. The market was hoping that the Fed would take an aggressive stance and would make a big cut to encourage development. But the vigilant tone gave the message that the central bank is still concerned about inflation and will not take any major step in haste.

The reaction of the stock market also shows this mixed atmosphere. The major American indexes such as Dow Jones and Nasdac saw an early lead, but the excitement cooled down by the end of the session. Investors say that it will be difficult to see long -term positive trends until the Fed does not give reliable indications on the direction of the future.

Bond yields were recorded, but the dollar remained relatively strong. This can increase pressure on emerging markets as strong dollars attract foreign capital towards America. At the same time, safe assets like gold saw a slight increase as investors maintained vigilance.

Many analysts believe that this cut is like “half-incomplete trust”. Fed wants to show that he is serious about economic development, but also does not want to relax the fight with inflation. This is why investors are still in a state of confusion.

In the coming months, the Employees and Consumer Price Index (CPI) coming from the US will prove to be decisive for the Fed policy. If inflation is controlled and economic lethargy increases, then the possibility of deducting the rate may remain open.