🔥 #OFFICIAL FED CUTS INTEREST RATE BY 0.25 POINTS – THE 3RD TIME IN 2025

The Fed has decided to further reduce by 0.25%, meeting market expectations. The voting showed the largest division since 1988, in which:

– 9 members supported the rate cut

– 2 wanted to keep it unchanged

– 1 wanted a stronger cut of 0.5%.

🔴 KEY POINTS FROM THE MEETING:

1️⃣ Economic situation & employment

The Fed acknowledged that the economy is lacking clarity and risks in the labor market have increased in recent months. Inflation remains above target but is trending downward.

2️⃣ Plan for light liquidity injection

✅ The Fed will start buying 40 billion USD in Treasury bills over 30 days, starting from 12/12 — in order to keep the financial system operating steadily.

3️⃣ Economic forecast for 2026

✅ Adjusted GDP growth increased to 2.3%

✅ Unemployment rate held at 4.4%

✅ PCE inflation and core PCE slightly decreased

→ General outlook: the economy is growing more steadily, inflation is gradually reducing.

4️⃣ Interest rate guidance (Dot Plot), the Fed anticipates:

– An additional cut of 0.25% in 2026

– An additional cut of 0.25% in 2027

→ No change compared to the September forecast.

📣 IN ADDITION, IN THE SPEECH, MR. POWELL EMPHASIZED:

– Policy needs to balance between labor market risks and inflation.

– The Fed has not made a decision for the January meeting.

– The level of bond purchases may remain high in the coming months.

– No member believes the Fed will raise interest rates again.

⭕️ OVERVIEW: The Fed continues on a path of easing but cautiously, maintaining the economic outlook and opening new expectations for monetary policy in 2026–2027.

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