- Analytica Investor
- Posts
- 📊 Fed Delivers, Market Stays Cautious
📊 Fed Delivers, Market Stays Cautious
A 25 bps cut buoyed housing and issuance, but Powell’s tone flagged growth risks for smaller firms
Matthias Schneider
September 18, 2025
Good Morning Investors,
The policy backdrop remained in focus. The Federal Reserve cut rates by 25 bps and signaled more easing ahead, a shift that often supports higher-risk small-cap valuations and new issuance activity.
Chair Powell’s comments about a cooling labor market and the Fed’s “meeting-by-meeting” approach injected uncertainty, adding volatility and raising questions around growth trajectories for smaller firms.
Easing mortgage rates and stronger IPO returns may provide support for housing-related small-caps and new-issue names, though liquidity and earnings sensitivity remain key watchpoints.
Matthias Schneider
Editor at Analytica Investor