For the first time in more than four years, the Federal Reserve has cut the target for its benchmark interest rate, slashing it by 50 basis points.

Morgan Stanley Investment Management Senior Fixed Income Portfolio Manager Vishal Khanduja notes that, based on the Fed's projections, unemployment is now in focus rather than inflation. Khanduja describes the new rate-cutting cycle as a "recalibration" rather than one prompted by recession fears. He also thinks the US economy is still on track for a soft landing, arguing that "The timing [of cuts] is right. Maybe they're off by a meeting or two, but they have a lot in their toolkit."

Watch the video above for Khanduja's takeaways for bond market investors.

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

This post was written by Stephanie Mikulich.

This post has been updated to reflect Mr. Khanduja's title.