Here are five key takeaways from the Fed’s big interest rate decision

On Wednesday, the federal reserve made a commonly expected quarter percentage interest rate deduction to reduce its comparison to the 4-4.25%target range, which is the lowest in about three years. In addition, the Federal Open Market Committee of the Central Bank gave signals about what happened on the road.

With the news conference of President Jerome Powell, five fundamental inferences from the meeting:

1. Although the ratio reduction was not a surprise, there was a lot of intrigue as to what the expectations of individual members would show the “point plan” for the future. CONCLUSION: This year, two more sections, another in 2026 and one more in 2027, all will reduce the fund rate to 3%, and the committee of the committee is “neutral”.
2. The markets were not sure what to do. The first rally in the Dow Jones Industrial Average lost some steam, but the blue chip index still scored 260 points. However, both S&P 500 and Nasdaq have published losses. In the Treasury market, the yield at short ends is lower, it was higher for longer term, which is a potential problem when trying to avoid stagflation for the Fed.
3. At least some of the confusion may have characterized the ratio movement from Powell as a “risk management” section. Beyond that, although the FOMC rapidly shows the cutting speed this year, in the two meetings in October and December, there are only one decrease in each of the next two years and there are no interruptions in 2028. The mixture between Dovness and Şahinler left the markets.
4. The new Governor Stephen Miran attended his first meeting after he swore on Tuesday, and the meeting began with a strong scent of politics. However, Powell gave very little tension indicator in the air. “The only way to really move things by any voter is to be incredibly convincing, and the only way to do it in the context we work is to make really strong arguments based on the data and understanding of the economy. This is really important and that’s how it works.” He said.
5. Miran, in favor of a larger half -point movement, was the only member who voted against the segment, while the DOT plan showed a wide inequality between the authorities’ views and underlined a challenging policy path to the next. This year, those who only want one more cut, two people looking for 10-9 differences against those looking for a narrow way. In the coming years, it showed a wide distribution of potential results.