#FOMCWatch Based on the results of the last Federal Open Market Committee (FOMC) meeting held on December 10, 2025, here is a post summarizing the current landscape under the hashtag #FOMCWatch:
📉 The Fed wraps up 2025 with a third rate cut.. but caution is the order of the day!
The U.S. central bank concluded its last meeting of the year with a decision that aligns with expectations, but it carries a "hawkish" tone towards the future. Here’s what happened and what to watch for:
📍 The main decision:
The third cut: Reducing interest rates by 25 basis points (a quarter of a percentage point), bringing it to a range of 3.50% - 3.75%. This is the third consecutive cut since last September.
Internal division: The decision did not pass unanimously; 3 members opposed the decision (which has not happened since 2019), with some calling for a larger cut (50 points), while others wanted to maintain the interest rate.
🔍 Messages from Jerome Powell and the final statement:
No rush anymore: The statement added the phrase "magnitude and timing" of upcoming adjustments, suggesting that the Fed may pause in the upcoming meetings to monitor data.
Labor market: The Fed acknowledged the existence of "downward risks" in the labor market, which is the main reason behind this "insurance" cut.
Inflation: Still above the 2% target, which makes the bank cautious about any rapid cuts that could lead to prices rising again.
📊 Forecasts for 2026:
Dot Plot: Indicates the probability of a single cut of 25 basis points throughout 2026, which disappointed markets that were expecting greater easing.
Growth: GDP growth forecasts for 2025 have been raised to 1.7% and for 2026 to 2.3%.
💡 What does this mean for investors?
Markets are now in a "wait and see" mode. The dollar stabilized, gold is watching cautiously, while bond yields began to reflect expectations that interest rates will remain "higher for longer" than anticipated.$FF
