Federal Reserve Chair Jerome Powell is known for providing clear signals about the central bank’s next interest rate move in order to avoid roiling markets. But Wall Street was mostly clueless this week when it came to predicting how big a rate cut the Fed would deliver on Wednesday.

MORE: What does the Fed interest rate cut mean for mortgages and homebuyers? By the end of 2024, interest rates will fall another half of a percentage point from their current lev

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.