Mid-Cap Stocks: The Unexpected Beneficiary of Rate Cuts

Understanding the Federal Reserve's Rate Cuts

The Federal Reserve recently decided to lower interest rates for the first time since 2020, sparking intense discussions among investors about the best investment strategies to adopt. Interest rates are the cost of borrowing money, and when they are cut, it generally becomes cheaper for businesses and consumers to borrow and spend. This can lead to economic growth, which affects different types of stocks in various ways.