Dovish Fed moves could make a frothy US market frothier

Financial TimesTuesday, September 23, 2025 at 11:30:02 AM
Dovish Fed moves could make a frothy US market frothier
The Federal Reserve's recent dovish stance, including potential interest rate cuts, could exacerbate the already high valuations in the US market. While lower rates typically stimulate economic growth, they also raise concerns about financial stability as equities continue to soar. This situation is significant because it highlights the delicate balance the Fed must maintain between fostering growth and preventing market excesses.
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