Overview

• The Federal Reserve lowered the policy rate by 25 basis points to 4.00–4.25% and projected up to two additional quarter‑point cuts before year‑end, with a possible further step in 2026.
• Chair Jerome Powell emphasized a data‑dependent, meeting‑by‑meeting approach and said there was no broad support for a 50‑basis‑point move.
• Stephen Miran cast the lone dissent for a larger cut as political pressure from President Trump draws scrutiny, while a court blocked Trump’s attempt to remove Governor Lisa Cook.
• Weaker labor data, including very soft recent payroll gains and sizable revisions, and inflation near 2.9% shaped the decision’s rationale.
• Markets whipsawed: the Dow and other U.S. benchmarks notched records on Thursday, European stocks rose, gold briefly hit a record before retreating, the dollar fluctuated, and Germany’s DAX temporarily counted 41 members with Continental’s Aumovio listing.