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Key Takeaways & Insights

Yesterday’s interest rate cut marks the Fed’s official transition to monetary easing.  What does this mean for the long term? CIO Ben Pace shares his perspective.

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  • The Federal Open Market Committee (the Committee) decreased the federal funds rate by 0.25% (25 basis points)
    yesterday to a range of 2.00%-2.25%.
  • The markets viewed this reduction as a more hawkish cut and reacted accordingly. U.S. equities sold off as the market had priced in a more dovish Fed, if not a .50% cut.
  • While investors may quibble over the magnitude of potential ease, monetary policy is now a clear tailwind and should support higher equity valuations in an environment of continued economic and earnings growth.

Meet the Author

Ben Pace

Partner & Chief Investment Officer

Ben is the Chief Investment Officer and a Partner in the New York office. He leads the firm’s Investment Committee and is a member of the Executive Committee. He has more than thirty years of experience in investment management. Ben has been featured in the Wall Street Journal and Reuters, and is a frequent commentator on Bloomberg TV and radio, Fox TV and CNBC, appearing regularly on network programs such as Power Lunch, The Closing Bell, Squawk Box, and Worldwide Exchange.

Prior to joining Cerity Partners, Ben was Chief Investment Officer and Head of Global Investment Solutions for Deutsche Bank Private Wealth Management in the U.S. In his role as CIO, he sat on the PWM Global Investment Committee, providing input on the U.S. economy and capital markets. He oversaw the investment strategy and asset allocation for PWM clients in the U.S. As Head of Global Investment Solutions, he brought together PWM’s capital markets and investment capabilities in an effort to provide an effective and consistent experience for clients. Prior to joining Deutsche Bank in 1994, he managed equity income funds for two investment organizations. During his tenure with those institutions, he also served as a securities analyst with a particular emphasis on the financial services and healthcare industries.

He earned his Bachelor of Arts in economics from Columbia University and Masters of Business Administration in finance from New York University.

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