Fed cuts, posts cautious outlook for 2026

Chris Beauchamp IG

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.

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Chris Beauchamp

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