The Federal Reserve cut the federal funds rate by 0.5% on Tuesday. As you would expect, businesses that stand to benefit most directly from the Fed cut -- big banks such as Bank of America (NYSE: BAC ) and Citigroup (NYSE: C ) -- rose on the news. But other stocks seemed to shrug off the rate cut.
So what will the Fed cut mean for investors? Is the Fed chief making a monetary mountain out of an economic molehill? What will the rate cut mean for housing stocks such as Centex (NYSE: CTX ) and NVR (NYSE: NVR ) ? Should U.S. investors look south to Mexican companies such as Cemex (NYSE: CX ) and Grupo Aeroportuario Centro Norte (Nasdaq: OMAB ) ? Will shares of Yum! Brands (NYSE: YUM ) taste better after the latest Fed cut? In this installment of "Fool Video," Motley Fool senior analyst Seth Jayson gives his take.
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