The third quarter of 2019 witnessed the Federal Reserve lower its Fed Funds Target Rate twice, with a cumulative reduction of 0.50% from 2.5% to 2.0%. The initial rate reduction on July 31st helped foster a fixed income rally that pushed the Barclay’s U.S. Aggregate Index up 2.6% in August, while equity investors may have hoped for a larger cut evidenced by an S&P 500 performance that declined 1.6% during the same month. The Fed cut its Target Rate again in September by an additional 25 basis points and the equity market rallied into quarter end for a September return of 1.9% and a quarterly return of 1.7%. The bond index added to its strong year-to-date performance by finishing the quarter up 2.2%. 

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