Interest Rate Cuts Are Here. This Is What That Means for Dividend Investors

Date: 2025-09-18 19:00:07

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It finally happened. After a couple of years, the Federal Reserve has finally announced an interest rate cut. On Wednesday Jerome Powell announced that we would finally see an interest rate cut of 25 basis points. Many were speculating more, and some thought we wouldn’t get a cut at all at this meeting, but Powell actually followed through and gave us a small cut. That’s despite some headlines that were painting a less optimistic view on this recent Fed meeting. Powell seemed concerned about the impact of Trump’s tariffs on the economy and if that would’ve led to higher inflation. If that was the case, and inflation started shooting back up, then Powell would’ve reversed course on his decision to cut rates. We might not have even gotten a single cut in 2025 if that had played out. But fortunately the sky-high inflation thing didn’t pan out like some media sources seemed to be eagerly awaiting, although some higher inflation could still happen later. So now that we’re finally getting rate cuts, what does that mean for the stock market, and more specifically dividend and high-income investors?

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