Market analysis: The Federal Reserve cut interest rates in line with expectations, with labor market weakness as the main reason

Michael Rosen, chief investment officer at Angeles Investments, said: "This rate cut was expected, so there were no surprises. A 25 basis point cut was also expected by a vote of 9 to 3, with Schmid and Goolsby supporting no rate cut and Milan wanting a 50 basis point cut. Again, there were no surprises. The statement highlighted weakness in the labour market, which was the main reason for the 25 basis point cut. This detail was captured by the market, suggesting that the Federal Reserve may continue to ease policy, although the current easing expectation of only implementing a 25 basis point rate cut next year has not changed."