Fed Cuts Rates 25bps, But the Real Shock Is What Comes Next

The Federal Reserve implemented the widely expected 25-basis-point interest rate cut, bringing the target range to 3.50%-3.75%. However, the decision was non-unanimous, reflecting internal committee tension. The FOMC acknowledged slowing job gains and slightly higher inflation but avoided committing to a sustained easing cycle, instead emphasizing a data-dependent track for future policy. This cautious stance, which omits forward-leaning language, means the market's focus shifts immediately to January and March for clearer signals, as the cut itself was less significant than the uncertain guidance. Furthermore, the Fed noted its readiness to purchase short-term Treasuries if necessary to maintain reserve adequacy.

(Source：BeInCrypto)