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Moving From Cuts to Caution: Fed Enters 2026 in Wait-and-See Mode
The Federal Reserve delivered a widely expected 25-basis-point (bp) rate cut in December, then signaled a more data-dependent path ahead. Barring an economic shock, we probably won’t see another rate cut until the second half of next year. In the weeks since the previous meeting in October, several Fed officials had expressed discomfort with further rate cuts. Indeed, two officials dissented outright at this meeting by voting to hold the rate steady (and one official voted to cut 50 bps). Four officials used the new economic projections – or “dot plot” – to show they would have preferred to pause in ... (full story)
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Federal Reserve Chair Jerome Powell downplayed dissenting votes against Wednesday’s decision to lower interest rates again, but a slew of finer details from the meeting revealed just how divided the central bank has become. Powell pushed through the quarter percentage point cut not only over the objection of a few voters. A much larger group of regional Fed ...
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