The Federal Reserve announced a 25 basis point interest rate cut after its monetary policy meeting, aligning with market expectations. This marks the third rate cut by the Fed in 2025.
David Kelly, Chief Global Strategist at JPMorgan, was not surprised by this move. He believes that the central bank is laying the groundwork for a more cautious monetary easing policy next year. Kelly noted a calm atmosphere before the transition between two administrations and suggested that the new government might eventually pressure the Fed to adopt a more relaxed policy stance.
However, the Fed has taken a firm position, indicating that this is the extent of their action, aiming to avoid or delay potential conflicts with the government in 2026.
