Fed Cuts Rates Amidst Divided Vote, Markets Expect More Easing in 2026
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TL;DR
The Fed cut rates with a divided vote, signaling a cautious approach and projecting only one more cut in 2026, contrary to market expectations of multiple cuts next year.
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Federal Reserverate cutinflationeconomic data2026 projections
The US Federal Reserve delivered a rate cut but emphasized that future decisions depend on incoming economic data, contradicting market expectations of two cuts next year. The decision came with a divided vote and a hawkish tone, with officials expecting one quarter-percentage-point cut in 2026 and inflation easing to 2.4% by year-end. The move was seen as a cautious step despite optimistic projections for 2026.
