🚨 Fed Holds Interest Rates Unchanged, Easing Signals Point to 2026?
After a two-day meeting, the Federal Reserve decided to keep interest rates unchanged at 5.25%–5.50%. This decision concludes a period of significant policy tightening and aligns with current market expectations.
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🔻 **Key Points:**
* 📈 The US economy demonstrates steady growth, and the labor market remains stable. The Fed has dropped its warning of a sharp weakening risk.
* 📊 Inflation persists around 3%, remaining above the Fed's 2% target, which prompts a cautious stance from the central bank.
* ⚠️ While immediate rate adjustments are paused, significant easing might not be on the table until at least mid-2026, pushing back earlier expectations.
* 🏛️ Internal disagreements have emerged, with two governors reportedly advocating for a further 0.25% rate cut, highlighting diverse views within the Fed.
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The US economy continues to show positive signs, with GDP increasing by 4.4% in the third quarter and potentially reaching 5.4% in the fourth quarter. However, persistent inflation and the impact of tariff policies remain significant challenges for the Fed.
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Markets are now closely monitoring for clearer signals regarding the commencement of the next easing cycle, with expectations for substantial rate reductions potentially pushed further into the future.