The US Federal Reserve on Wednesday lowered its benchmark interest rate by 25 bps to 3.75%–4.00%, marking its second consecutive cut this year. The central bank said future rate moves will be guided by risks to the US economy, evolving data and economic outlook.

Powell Cautions Against December Cut Hopes

Despite the cut, Fed Chair Jerome Powell signalled caution. He said expectations of another rate cut in December 2025 are not a “foregone conclusion," stressing that the situation is “far from it." Markets now assign around a 68% probability to another 25 bps cut in December.

Market Reaction Globally

US markets closed mixed after the policy announcement — the Dow Jones and S&P 500 slipped, while the Nasdaq gained on tech strength. Asian markets opened mostly lower on Thursday as Powell

See Full Page