The reaction to the rate cut has been positive across the soft landing checklist. Odds of avoiding recession are higher following Chair Powell's aggressive start.

The Federal Reserve gave home shoppers what they hoped for this week: a big rate cut and a signal of more cuts to come. Even so, aspiring homebuyers and homeowners eager to refinance should temper their expectations of a big drop in mortgage rates from here.

After the Fed’s pivotal interest rate cut this week, policymakers face the question of how much further to reduce borrowing costs, and how fast.