Overview
- The 25‑basis‑point reduction marks the third cut of 2025, taken with limited official data after a 43‑day government shutdown.
- Only nine of the twelve voting members backed the move, and guidance pointed to a likely pause, with policymakers signaling just one cut in 2026 versus markets pricing two.
- The Fed said it will resume reserve‑management purchases of short‑term Treasuries at roughly $40–45 billion per month to support liquidity.
- New projections show stronger growth and slightly lower inflation in 2026, with a 2.3% median GDP outlook and about 2.4% inflation.
- Stocks posted modest gains as the dollar weakened against the euro, while President Trump pressed for deeper cuts and an ally on the committee voted for a larger reduction.