Another 25 bps cut on labour weakness; signals potential pause in December
As widely expected, the Federal Reserve delivered another 25 basis points (bps) cut, bringing the federal funds rate to 3.75%–4.00%. The voting split highlighted a divided Fed: Stephan Miran favoured a larger 50 bps cut, while Jeffrey Schmid preferred no change.
Fed speak: Subtle recalibration. The shift from “recent” to “available” data to acknowledge the lack of visibility. The key change was the decision to end securities runoff on December 1. Labour market concerns remained the primary justification for easing, even without materially new data.
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