December FOMC: Fed Cuts Rates But Signals A Pause Ahead As Policy Inches Closer To Neutral
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MTS Insights770 FollowersFollow5ShareSavePlay(22min)CommentsSummaryThe Federal Reserve cut rates by 25 bps to 3.50–3.75%, marking a 'hawkish cut' amid deep FOMC division and persistent uncertainty.Projections signal a shift toward a neutral policy stance, with the Fed likely to pause and assess incoming data before further moves.GDP growth forecasts were revised higher, driven by AI-led productivity and fiscal tailwinds, while inflation and unemployment projections remain largely unchanged.Markets interpreted the Fed’s stance as dovish, with equities and bonds rallying and a strong probability of a January pause now priced in.
Getty Images The Federal Reserve closed out the year with a closely watched 25 basis point rate cut, lowering the federal funds rate to a range of 3.50 to 3.75 percent and extending what has become a cautious but persistent easing cycle. It wasThis article was written byMTS Insights770 FollowersFollowI cover global macro data releases and events; ETFs representing sectors, industries, and asset classes; and earnings reports. For more analysis, visit my website or follow me on X (@MTSInsights).Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You