"In a tense and unusually divided meeting, the U.S. Federal Reserve decided to cut interest rates by 0.25 percentage points to a range of 3.5% to 3.75%. This is the third consecutive rate cut since September, as concerns about a deteriorating labor market outweigh fears of rising inflation. The final meeting of the year also yielded new economic forecasts and offered some clues about the Fed's roadmap for 2026."
"Federal Reserve Chairman Jerome Powell has had to work hard to calm the waters and reach a consensus that would allow for further rate cuts and minimize disagreements. Nearly half of the Fed's board members preferred a pause before the meeting began, and at least one other, Stephen Miran, Trump's Trojan horse, advocated for a steeper rate cut. The Fed is going through a turbulent period."
The Federal Reserve reduced its policy rate by 0.25 percentage points to 3.5%–3.75%, marking the third consecutive cut since September. New economic forecasts were released and some guidance toward 2026 was provided. Officials cited a deteriorating labor market as the primary reason to ease policy despite ongoing inflationary pressures. Nearly half of board members had favored a pause, while at least one official advocated a larger cut. President Donald Trump publicly pressured the Fed, insulted the chairman, called for his resignation, and placed allies within the central bank. Economists warn of K-shaped growth as tech investments and booming markets mask weaknesses, with energy and utility prices keeping inflation elevated.
Read at english.elpais.com
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