The Fed cuts interest rates for the second time – the signal of a "soft landing" is becoming clearer

At the end of the October meeting, the Fed continued to cut interest rates by 25 basis points, marking the second reduction of the year 2025. This move reinforces expectations that the ongoing easing cycle is being implemented in a controlled manner. However, there are still divisions within the Fed: Stephen Miran opposes the cut, arguing that interest rates should be kept unchanged, while Jeffrey Schmidt disagrees, wanting a more significant reduction.

Notably, the Fed will end the quantitative tightening (QT) program on December 1, a move that could help the financial system "breathe" easier after a long period of liquidity withdrawal. Nevertheless, the Fed acknowledges that inflation has risen and remains quite high, emphasizing that the path to lowering interest rates will not be rushed.

The overall tone remains cautious yet vigilant, reflecting the effort to balance the risks of inflation and growth.

👉 The USD is cooling down, bond yields are falling, and the "risk-on" sentiment is gradually returning to global exchanges.