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Fed lowers interest rate by 25 bps to a range of 3.5%-3.75% as was widely expected by the market but signals future cuts are no guarantee
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There were three dissents, the first time in six years.
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There was a return in the post-meeting statement from a year ago, which had signaled the Fed was done cutting for the time being.
“In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks,” the statement said.
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The “dot plot” expectations remained unchanged from September, signaling one rate cut in 2026 and 2027.
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The fed raised its GDP projections for 2026 to 2.3% from 1.8%.
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It said it will purchase $40 billion of of Treasury bills per month starting Dec. 12 as it’s looking to rebuild reserves used while tightening the balance sheet.
