Yesterday’s ¼ point rate cut (the first since 2008) was expected and already priced into the markets. However, markets had priced in more than just one cut. That said, during Fed Chair Powell's press conference, equity markets plunged, reminiscent of the 2013 Taper Tantrum. Why did this happen? Fed Chair Powell strongly implied “one and done” and stating this is a mid-cycle rate adjustment, as opposed to one in a series of rate cuts. The prospect of no more rate cuts this year sent markets reeling and seems asset values are likely overpriced. The thought of pricing to market spooked those that are clinging to the punchbowl and hoping that another rate cut is forthcoming. The 10-year Treasury closed at 2.01% and the 30 day LIBOR at 2.23%. The Fed's responsibility is keeping inflation in check and keeping an environment where you have full employment. We have both now and the Fed under normal circumstances would not have lowered the rate but with global economic weakness and pressure from Wall Street and Trump, the Fed gave in a little but signaled no “gimmies” coming unless there are stronger signs of a slowdown. Bond Market reacted positively for us as is reflected in the 2.01, 10-year T. I am available anytime to discuss rates and terms for your property.