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π¨ FED CUTS RATES AGAIN β ENDS BALANCE SHEET REDUCTION IN DECEMBER
The U.S. Federal Reserve just delivered its second rate cut of the year, lowering the benchmark rate by 0.25% to 3.75%β4% with a 10β2 vote.
At the same time, the Fed announced it will end its balance sheet reduction program (QT) on December 1, after shrinking its holdings by $2.3 trillion β a move widely seen as a positive signal for market liquidity.
Inside the Fed, opinions are split: Governor Stephen Miran, recently appointed by President Trump, pushed for a deeper 0.5% cut, while St. Louis Fed President Jeffrey Schmid opposed further easing.
The Fed noted the U.S. economy remains resilient, though job creation has slowed and inflation hovers around 3%, still above target due to energy prices and tariff impacts.
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