History shows that Fed rate cuts often boost the stock market, but context matters—normalization cuts tend to drive gains, while recession cuts can lead to losses.

San Francisco Federal Reserve Bank President Mary Daly on Monday said she has not seen anything to suggest the U.S. central bank would stop cutting interest rates, which are "absolutely" still high enough that they are restraining the economy.

The Fed cut rates five weeks ago, but banks are still paying high interest rates on high-yield savings accounts and combo checking/savings offers.

Federal Reserve Bank of Kansas City President Jeffrey Schmid expressed caution Monday against implementing outsized interest-rate cuts like the 50-basis-point reduction last month, "especially given uncertainty over the eventual destination of policy and my desire to avoid contributing to financial market volatility.

Kansas City Federal Reserve Bank President Jeffrey Schmid said on Monday he supports a "cautious and deliberate" approach to interest rate cuts now that inflation is heading back to the Fed's 2% target and the labor market is normalizing.

The coronavirus has wreaked havoc on the economy, and in an emergency response, the Federal Reserve slashed interest rates by a full percentage point—the second rate cut in two weeks and the largest in Fed history.