The Fed cut interest rates by 0.25%, but this decision shows that there is significant internal disagreement. The vote was 9 in favor and 3 against, the most dissent since 2019. One member wanted a more aggressive cut, while two members preferred to keep rates unchanged. Therefore, many experts are calling this a "hawkish rate cut."
The Fed also signaled that the pace of future rate cuts will slow down. The "dot plot" chart indicates only one rate cut in 2026 and one in 2027, after which long-term interest rates will stabilize around 3%. Some officials even prefer to hold rates steady next year.
Inflation remains above the target at 2.8%, and the Fed predicts it will only return to 2% by 2028. The GDP forecast for 2026 has been slightly raised.
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The Fed cut interest rates by 0.25%, but this decision shows that there is significant internal disagreement. The vote was 9 in favor and 3 against, the most dissent since 2019. One member wanted a more aggressive cut, while two members preferred to keep rates unchanged. Therefore, many experts are calling this a "hawkish rate cut."
The Fed also signaled that the pace of future rate cuts will slow down. The "dot plot" chart indicates only one rate cut in 2026 and one in 2027, after which long-term interest rates will stabilize around 3%. Some officials even prefer to hold rates steady next year.
Inflation remains above the target at 2.8%, and the Fed predicts it will only return to 2% by 2028. The GDP forecast for 2026 has been slightly raised.
The Fed also announced it will buy back government bonds, starting with $40 billion in short-term bonds to ease pressure on the money market.#FedRateCutPrediction #PostonSquaretoEarn$50 $BTC $ETH