The Federal Reserve slashes interest rates by 50 basis points at its September meeting.

Former President and CEO of the Federal Reserve Bank of Kansas City and distinguished senior fellow with the Mercatus Center Thomas Hoenig reacts to the Fed's decision and what it means for the US economy going forward.

"I thought they would be more cautious," Hoenig tells Yahoo Finance, adding: "I'm somewhat disappointed by it, but, I think they're — based on this, they've taken a little bit of a victory lap."

Hoenig goes on to unpack what a 50 basis point cut will do to the the labor market and the inflation. He also weighs in on what he think the Fed's next move will be.

Watch the video above to hear Hoenig's take on the Fed's 50 basis point cut.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Daniel A. Nelson