⚡ 📉 FED HOLDS RATES AT 3.50%-3.75% – POWELL’S FINAL MEETING ENDS WITH BIGGEST DISSENT IN OVER 30 YEARS
Rates Unchanged – As Expected: Maintained target at 3.50%-3.75%, perfectly in line with market expectations, avoiding immediate volatility.
Steady Growth but Cooling Labor Market: Economy remains on track, yet weakening job gains and stable unemployment signal the labor cycle is cooling.
Energy-Driven Inflation: Price pressures mainly from global energy costs (cost-push), reducing monetary policy effectiveness.
Rising Geopolitical Risks: Middle East tensions highlighted as major uncertainty, increasing risks of prolonged inflation.
Policy Outlook: Mild easing bias but deeply divided (8-4 vote). Governor Milan dissented for a 25bps cut; others opposed dovish language.
Powell ends his tenure with a cautious but notably split decision. The Fed is at a crossroads — balancing energy inflation risks with slowing growth signals. Markets now face heightened uncertainty as leadership transition begins.
