🇺🇸 FED FOMC MEETING SUMMARY (12/10)
➡️ The Fed cut interest rates by 0.25%, bringing them down to 3.5–3.75%.
➡️ They now think rates are in a “normal” or neutral zone, neither boosting nor slowing the economy too much.
➡️ Inflation is still a bit high, and prices of goods are rising again.
➡️ The Fed expects the economy to grow faster in 2026 than previously thought.
➡️Job market risks are increasing, meaning employment could weaken.
➡️ Recent data shows inflation heating up again, mainly from goods.
➡️ Three members disagreed:
👉 Schmid and Goolsbee wanted no rate cut
👉 Miran wanted a bigger 0.50% cut
➡️ The Fed will start buying Treasury bills again on Dec 12 — about $40B over the next month , which slightly expands its balance sheet.
The Fed said this rate cut is for risk management, not the start of a long series of cuts.