There has been some talk in the media lately about the effects of FED rate cuts on the stock market. Conventional wisdom says that the FED begins cutting rates when it fears a contraction in the economy is coming. This is because it is afraid if it waits too long to cut rates it will “get behind the curve” and then cuts will not be effective. So when the FED cuts rates for the first time after a period of raising rates that must mean that  the FED fears a recession coming on (which is bad for stocks). So, the question we are going to look at today is whether the facts actually bear out this conclusion. In today’s video Chris Ciovacco analyzes the FED rate cuts and how the situation relates to the current economic climate.