ausbiz | Fed Cuts a Boon to Small Caps

Activam's Deputy Portfolio Manager, Alex Crompton, spoke with ausbiz to address the ongoing speculation about the Federal Reserve's next move on interest rates. Alex mentioned a significant shift in market expectations, noting that while a quarter-point rate cut is previously favoured, the possibility of a half-point cut becomes more credible. However, a larger cut might spook the market, suggesting the Fed could be lagging behind economic conditions.