Today’s quarter point rate cut (the first since 2008) was expected and already priced in to the markets. However, markets had priced in more than just one cut. During Fed Chair Powell’s press conference, equity markets plunged, reminiscent of the 2013 Taper Tantrum. Why? Fed Chair Powell strongly implied “one and done” by stating that 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. It seems that asset values are very likely overpriced and the thought of pricing “mark to market” spooked markets 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 is at 2.23%. By David R. Pascale, Jr. , Senior Vice President at George Smith Partners