The interest rate cut of 25 basis points in December aligns with market expectations, while confirming that there will be no rate hikes next year. The dot plot anticipates another cut in 2026 and 2027, but due to the change in the Federal Reserve Chair, this number, although below expectations, still holds some suspense. Powell believes that employment data is overstated, so the non-farm data to be released next Tuesday will be an important reference.
