The Federal Reserve cut interest rates. Now What?

The Federal Open Market Committee cut the Fed funds rate by 25 bps to 2–1/4 as widely expected. The decision to cut interest rates comes at a time when the U.S. economic activity is strong, growing at 3.1% and 2.1% in Q1 and Q2 2019 respectively. Meanwhile, inflation eased below target at 1.8% and 1.6% in May and June 2019.