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<p>The Fed has just marked a decisive turning point in its monetary policy, triggering a real shockwave in the European markets. After months of tightening, the American institution has decided to ease the pressure, and the result was immediate: European stock markets soared. A palpable relief spread across financial markets, giving a fresh boost to indexes. But this decision comes in a broader context of global economic tensions, where every move by the Fed is closely scrutinized.</p>
<h2 id="h-un-virage-decisif-de-la-fed-propulse-l-europe-dans-le-vert">A decisive turn by the Fed propels Europe into the green</h2>
<p>The much-awaited moment for investors has finally arrived: the Fed has eased up. After a cycle of eleven consecutive hikes of its key rate, the American central bank has opted for <a href="https://www.cointribune.com/en/rate-cut-is-the-fed-about-to-make-a-grave-mistake/" target="_blank" rel="noopener noreferrer nofollow">a 0.5 percentage point cut.</a></p>
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<p>A strong move that immediately reassured European markets, which posted impressive gains from the opening.</p>
<p>The <a href="https://www.cointribune.com/en/stock-market-gold-outperforms-the-cac-40-thanks-to-massive-purchases-by-russia/" target="_blank" rel="noopener noreferrer nofollow">CAC 40 </a>in Paris rose by 2.07%, Milan gained 1.02%, and London saw its index increase by 1.09%. But it was undoubtedly the German Dax index that stole the show, crossing the symbolic 19,000-point mark to reach a historic high.</p>
<p>This decision marks a crucial turning point for financial markets. Investors, long worried about runaway inflation and geopolitical tensions, finally breathed a sigh of relief. The Fed has not only eased its policy, but Jerome Powell, its president, adopted a measured tone, specifying that this easing could be temporary.</p>
<p>This caution leaves the door open to future adjustments, which reassures investors even more, as they now know the Fed will navigate with care.</p>
<p>This rate cut comes at a time when U.S. economic indicators were showing signs of slowing down.</p>
<p>By easing the pressure, the Fed hopes to strike a delicate balance between supporting employment and controlling inflation. And even though European markets reacted enthusiastically, caution remains necessary, especially on Wall Street, where the reaction was more mixed.</p>
<h2 id="h-tous-les-regards-tournes-vers-la-banque-d-angleterre">All eyes on the Bank of England</h2>
<p>While the Fed has chosen easing, the <a href="https://fr.wikipedia.org/wiki/Banque_d%27Angleterre" target="_blank" rel="noopener noreferrer nofollow">Bank of England </a>(BoE) is taking a very different approach.</p>
<p>This Thursday, it left its key rate unchanged at 5%, marking a pause in its rate-cutting cycle. A decision that might seem contrary to the Fed’s, but which is explained by the still fragile inflationary context in the United Kingdom.</p>
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<p>British inflation remained at 2.2% in August, close to the BoE’s target, but tensions persist.</p>
<p>Governor <a href="https://fr.wikipedia.org/wiki/Andrew_Bailey_(banquier)" target="_blank" rel="noopener noreferrer nofollow">Andrew Bailey</a> reminded that while rate cuts are envisioned in the medium term, it is essential not to rush things.</p>
<p>A delicate balance must be struck between supporting growth and controlling inflation, especially as energy prices are not slowing as quickly as they did last year.</p>
<p>For European markets, the stability of British rates is good news, as it holds out hope for a gradual return to more favorable monetary conditions.</p>
<p>But the BoE’s caution contrasts with the Fed’s boldness, and this could introduce some volatility in the coming weeks, particularly on London financial markets.</p>
<p>Investors will also be closely watching the future decisions of the Bank of England, whose November meeting could mark a turning point. If inflationary pressures continue to ease, a new rate cut could be considered. However, it will all depend on the <a href="https://www.cointribune.com/en/crypto-3-key-indicators-to-watch-this-week/" target="_blank" rel="noopener noreferrer nofollow">economic indicators</a> to come, and markets will remain on high alert.</p>

The Fed Is Easing Up And The Stock Markets Are Booming!

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