What next? Fed faces tough trade-offs

The 0.25% US interest rate cut was widely expected, having been priced into Fed Funds futures before the Federal Reserve met. Markets had expected more cuts by 2026, but rates are expected to fall below the Fed’s 2026 end-of-year forecast. Stephen Miran, a newly appointed Federal Open Market Committee (FOMC) member, was the only one to veto the cut, pushing for a larger reduction. The Fed's decision received little wider opposition, justified by stronger growth forecasts, lower unemployment expectations, and higher inflation projections. Read more about the FOMC’s balanced approach as it...