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Katherine Ross: We just got the Fed decision. They're cutting rates by 25 basis points. Joining me is Lauren Goodwin, Economists and strategists at New York life investments. Lauren, what should investors do now that we know what the decision is?

Lauren Goodwin: I think what's most important for investors to keep in mind is not what's different between yesterday and today, but the longterm trajectory that the Fed is on and what this means for their economic outlook. And so what the Fed is telling us is that the economy's slowing, there's risks to the downside, but that things are generally okay. This isn't a panic decision. And so the first piece of advice we have for investors is to stay invested. It's a little bit too early to run for the hills, and so that's the main thing we're encouraging them to do, but because we are late cycle, the second thing we recommend is to really consider the cautious way that you can move forward. That means getting a little bit more defensive in our portfolios as multi-asset investors. So in equity, that looks like relying on securities that don't need quite as much price appreciation to add value to your portfolio. So high dividend yields are reliable revenues, and in fixed income, that means increasing quality across the spectrum of securities.

Katherine Ross: Thank you, Lauren.

Lauren Goodwin: Thanks for having me.

The Federal Reserve decided, as was expected by experts, to cut rates by 25 basis points. 

Lauren Goodwin, economist and strategist at New York Life Investments, sat down with TheStreet to break down what this rate cut means for investors. 

"I think what's most important for investors to keep in mind is not what's different between yesterday and today, but the longterm trajectory that the Fed is on and what this means for their economic outlook. And so what the Fed is telling us is that the economy's slowing, there are risks to the downside, but that things are generally okay. This isn't a panic decision. And so the first piece of advice we have for investors is to stay invested. It's a little bit too early to run for the hills," said Goodwin. 

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