Overview
- The Federal Reserve lowered the federal funds rate to 3.50%–3.75% in a 9–3 vote, with two officials preferring no cut and one favoring a half‑point move.
- Fed projections show the median policymaker expects one additional cut by the end of 2026.
- The central bank announced targeted purchases of short‑term Treasurys to keep short‑term funding markets orderly, short of large‑scale bond buying.
- Stocks initially climbed, with the S&P 500 finishing just shy of a record and the Dow up about 497 points, before futures fell as Oracle’s weaker revenue and heavier AI spending hit tech shares.
- Treasury yields declined after the decision, and CME data showed traders increasing the probability of further rate cuts next year.