#美联储降息 The Federal Reserve announces a 25 basis point rate cut # Last night's Federal Reserve rate cut situation:

1. The Federal Reserve decided to lower the benchmark interest rate by 25 basis points to a range of 3.50%-3.75%, marking the third consecutive rate cut this year, with a total reduction of 75 basis points for the year.

2. Three members voted against. Stephen Milan advocated for a 50 basis point reduction in the federal funds rate target range at this meeting, while Goolsbee and Schmidt both argued for maintaining the federal funds rate target range unchanged at this meeting.

3. The Federal Reserve announced it will begin purchasing treasury bills on December 12.

4. The Federal Reserve's dot plot shows that among 19 officials, 7 believe there should be no rate cut in 2026, 4 believe a total cut of 25 basis points is appropriate, 4 believe a total cut of 50 basis points is appropriate, 2 believe a total cut of 75 basis points is appropriate, 1 believes a total cut of 100 basis points is appropriate, and 1 believes a total cut of 150 basis points is appropriate.

Meanwhile, Powell's statements are not assertive; he said no one has the rate hike as a base case scenario. The market expects either to maintain the interest rate unchanged or to cut rates. At the same time, it emphasizes that data shows a slight rise in the unemployment rate and significant slowdown in job growth. Artificial intelligence may be one of the reasons for employment weakness, but not the main reason.

Comment: The 25 basis point rate cut meets expectations, and Powell's speech is also dovish (the market expected hawkish). Additionally, the Federal Reserve announced it will start short-term treasury bill (T-bills) purchasing operations, helping to alleviate market concerns. Overall, it leans towards being favorable.