07:00 PM BST, United States - Fed Interest Rate Decision for December:
- actual 4.00%; forecast 4.00%; previous 4.25%;
The Federal Reserve delivered a 25 bp rate cut to 3.75–4.00% and announced it will end balance sheet runoff on December 1, marking a clear step toward policy easing. The decision showed a split committee, with Schmid dissenting in favor of no change and Miran preferring a 50 bp cut.
The Committee said that economic activity continues to expand at a moderate pace, though job growth has slowed and the unemployment rate has ticked up slightly. Inflation, meanwhile, has moved higher since earlier in the year and remains somewhat elevated, prompting the Fed to emphasize its ongoing commitment to returning inflation to 2% over the longer run.
In a key operational shift, the Fed revealed that starting in December it will reinvest all maturing Treasury and agency MBS principal payments into short-term T-bills, effectively halting quantitative tightening and stabilizing the size of its balance sheet.
The statement maintained a cautious tone, noting that downside risks to employment have risen, while uncertainty around the outlook remains high, particularly given the limited availability of recent economic data amid the government shutdown.
Markets viewed the overall message as slightly dovish — major U.S. stock indices posted modest gains, while EURUSD edged lower.
The “Halloween Effect” and the Five Fears Haunting Financial Markets
ECB Conference: Global Uncertainty, Policy Stability 💶
BREAKING: EIA gas inventories change slightly above expectations. NATGAS increase after EIA data 📌
Apple Preview: Will Asia spoil the earnings?
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
