Overview

• The Federal Reserve cut interest rates by 0.25%, bringing the target range to 4.25%-4.5%, but reduced its 2025 rate-cut forecast from four to two reductions.
• Fed Chair Jerome Powell emphasized caution in future monetary policy, citing persistent inflation and a strong labor market as key considerations.
• U.S. markets saw sharp declines, with the Nasdaq falling 3.56% and the Dow losing over 1,000 points, as investors recalibrated expectations for future rate cuts.
• Asian markets followed Wall Street's lead, with major indices in Tokyo, Hong Kong, and Shanghai declining, while the dollar surged to a two-year high against the euro.
• Uncertainty over President-elect Donald Trump's proposed tariffs, tax policies, and trade strategies has further complicated economic forecasts and monetary policy planning.