Overview
- The Federal Reserve delivered a third straight 25bp cut, setting the fed funds rate at 3.50%–3.75%.
- The decision drew three dissents, with Stephen Miran favoring a 50bp move and Austan Goolsbee and Jeffrey Schmid opting to hold.
- Officials project only one additional 25bp cut in 2026 and announced roughly $40 billion of short‑term Treasury purchases beginning December 12.
- The U.S. Dollar Index fell to 97.80, an eight‑week low, after initial jobless claims rose by 44,000 to 236,000 for the week ended December 6.
- Major banks expect further dollar weakness, with a Bloomberg consensus near a 3% drop by end‑2026 and some forecasts pointing to as much as 5% in the first half of 2026.