Fed cuts, posts cautious outlook for 2026
|The Fed has cut rates as expected, but there was only limited dissent to the decision, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.
Fed cuts, posts cautious outlook for 2026
We may just have seen Powell’s last cut in his tenure as Fed chairman. The committee saw 3 dissents to the decision, while a number of members expected to leave rates unchanged next year, and some even expect a rise in rates. Crucially, it seems that the Fed board can still be driven by a sufficiently charismatic governor, or one keen to invoke the will of the chairman.
Markets seem guardedly positive on the decision, with indices up, the dollar down and gold higher. Given the circumstances of a higher growth forecast for 2026, this was probably the best outcome stock investors could hope for.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.