Overview
- Following a 25-basis-point cut to 3.75%–4.00% in a 10–2 vote, Kansas City Fed’s Jeff Schmid and Dallas Fed’s Lorie Logan argued against further easing, with Governor Stephen Miran dissenting for a larger cut.
- Cleveland Fed’s Beth Hammack said she would have held rates and described policy as barely restrictive, while Atlanta Fed’s Raphael Bostic ultimately supported the cut but urged a slower approach given uncertainty.
- Markets trimmed the probability of a December cut to about 65%–66%, with event markets putting roughly a one-in-three chance on no move next month.
- Treasury yields ticked higher and bond ETFs weakened as expectations reset, with the 10-year near 4.07% after Powell’s comments and around 4.11% on Friday.
- The Fed ended quantitative tightening, and officials flagged a government data blackout that complicates the data-dependent path into December.