Overview
- The Federal Reserve lowered its target range by 25 basis points to 3.75%–4.00% and said quantitative tightening will stop in December.
- Chair Jerome Powell said another reduction next month is “not a foregone conclusion,” with futures pricing for a December cut falling to roughly 68% as stocks wavered, Treasury yields rose and the dollar strengthened.
- The decision drew two dissents, with Stephen Miran backing a deeper cut and Jeffrey Schmid favoring no change because inflation remains above target.
- The Bank of Japan kept its policy rate at 0.5% with two dissenters seeking 0.75%, and the yen weakened after the announcement as officials reiterated readiness to raise rates if conditions warrant.
- The European Central Bank left its deposit rate at 2% and stuck to data dependence, leaving euro zone markets steady as investors awaited Christine Lagarde’s remarks.