The Federal Reserve’s interest-rate cuts may disappoint investors

Going by how investors have reacted to Mr Powell’s pronouncements over the past couple of years, you might think this is unadulterated good news for them. After all, America’s stockmarket has spent much of that time cratering whenever it looked like interest rates would stay higher for longer, and soaring on any suggestion that borrowing costs might soon come down. But it is not for nothing that “buy the rumour, sell the fact” is such an enduring mantra in financial markets. For all that the prospect of rate cuts sets investors’ pulses racing, their actual arrival has often proved disappointing.