The market sentiment following the rate cut is mixed.
Markets are relieved in the immediate term with a "hawkish cut" (25 bps as expected), but the ultra-restrictive dot plot (only 1 cut in 2026) and the 3 dissenters dampen the euphoria.
Stocks are moderately up, the 2-year rate is down, the dollar is stable.
Investors are digesting a Fed that is more hawkish than expected, data-dependent, in the face of stubborn inflation and tariff risks.
In the short term: moderate optimism on risky assets. The Fed indicates it will buy $40 billion$ of Treasury bonds and that these purchases will start from December 12.