# The Fed rate cut: Markets reconsider the 'Fed Put' after underwhelming cut

> US stocks fell after the Federal Reserve cut its policy rate by 25 basis points and described the move as a mid-cycle adjustment without assuring further cuts. The Dow dropped sharply, the dollar rose near three-year highs, and credit spreads widened.

- Date: 2019-07-31 · published 2019-07-31T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/58267-the-fed-rate-cut-markets-reconsider-the-fed-put-after-underwhelming-cut
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Corn](https://feedsoft.ai/c/CORN.md), [Soybeans](https://feedsoft.ai/c/SOY.md)

## Why it matters

A firmer dollar and tighter financial conditions weigh on dollar-denominated commodity prices and can pressure risk assets, while the lack of clear further easing reduces the macro support for commodities.

## Read by commodity

- DXY: bullish ▲
- SOY: bearish ▼
- CORN: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2023-12-05 | [Most Asian FX, stocks fall after traders reconsider Fed rate cut bets - Markets - Business Recorder](https://feedsoft.ai/events/32968-most-asian-fx-stocks-fall-after-traders-reconsider-fed-rate-cut-bets-markets.md) | +0.4% | -0.6% |
| DXY | 2021-06-17 | [Global Stocks Tumble, Gold Slides After the Fed Meeting - Markets Insider](https://feedsoft.ai/events/12553-global-stocks-tumble-gold-slides-after-the-fed-meeting-markets-insider.md) | +1.1% | +1.7% |
| DXY | 2019-04-30 | [Market alert: Will the Fed cut interest rates? \| XTB](https://feedsoft.ai/events/59760-market-alert-will-the-fed-cut-interest-rates-xtb.md) | -0.1% | +0.7% |
| DXY | 2019-05-24 | [ING: U.S. Dollar to Remain Supported as Markets for a Fed Rate Cut are Misplaced](https://feedsoft.ai/events/59252-ing-u-s-dollar-to-remain-supported-as-markets-for-a-fed-rate-cut-are-misplaced.md) | +0.4% | -1.2% |
| DXY | 2024-01-31 | [Indian rupee to weaken as odds of Fed rate cut in March diminish - Markets - Business Recorder](https://feedsoft.ai/events/32382-indian-rupee-to-weaken-as-odds-of-fed-rate-cut-in-march-diminish-markets.md) | +0.3% | +0.4% |
| CORN | 2021-06-22 | [Why a hawkish US Fed is reverberating around markets \| The National](https://feedsoft.ai/events/46489-why-a-hawkish-us-fed-is-reverberating-around-markets-the-national.md) | +1.1% | -6.9% |
| CORN | 2021-02-22 | [US money markets bringing forward Fed rate hike bets to end-2022 - Markets - Business Recorder](https://feedsoft.ai/events/48546-us-money-markets-bringing-forward-fed-rate-hike-bets-to-end-2022-markets.md) | +1.6% | -3.4% |
| CORN | 2024-04-18 | [US dollar gains after strong data, Fed comments on rate cuts](https://feedsoft.ai/events/12555-us-dollar-gains-after-strong-data-fed-comments-on-rate-cuts.md) | -0.4% | +4.0% |

## Sources

- afr.com: https://www.afr.com/markets/currencies/markets-reconsider-the-fed-put-after-underwhelming-cut-20190801-p52cqk

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.