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EUR/USD caught a volatile bullish swing on Wednesday after the Federal Reserve (Fed) delivered a third straight interest rate cut.

The Fed cut interest rates by 25bps to 3.50–3.75%, fully in line with expectations. The decision was done by a three way split. Governor Stephen Miran again voting for a larger 50bps reduction. Meanwhile Chicago Fed Austan Goolsbee and Kansas City Fed Jeffrey Schmid voted for no change. All other policymakers supported the quarter-point move. […]

The post FOMC cuts as expected; dot plot shows only one cut per year through 2027 appeared first on ActionForex.

The U.S. has blocked the export of Nvidia’s Blackwell chips to China in an effort to stay ahead in the AI race.

From credit cards and car loans to mortgage rates, student loans and savings accounts, here’s a look at the ways a Fed rate cut could affect your finances.

The Federal Reserve cut rates by 25 basis points as expected. The full statement from the Fed.

Available indicators suggest that economic activity has been expanding at a moderate pace. Job gains have slowed this year, and the unemployment rate has edged up through September. More recent indicators are consistent with these developments. Inflation has moved up since earlier in the year and remains somewhat elevated.

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate and judges that downside risks to employment rose in recent months.

In support of its goals and in light of the shift in the balance of risks, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 3-1/2 to 3‑3/4 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.

In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.

The Committee judges that reserve balances have declined to ample levels and will initiate purchases of shorter-term Treasury securities as needed to maintain an ample supply of reserves on an ongoing basis.

Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Susan M. Collins; Lisa D. Cook; Philip N. Jefferson; Alberto G. Musalem; and Christopher J. Waller. Voting against this action were Stephen I. Miran, who preferred to lower the target range for the federal funds rate by 1/2 percentage point at this meeting; and Austan D. Goolsbee and Jeffrey R. Schmid, who preferred no change to the target range for the federal funds rate at this meeting.

The table of Fed projections shows:

The chance of a cut was around 90%.

Just before the decision:

• Dow was up 0.34%
• S&P was unchanged
• Nasdaq was down -0.38%

This article was written by Greg Michalowski at investinglive.com.

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White House Economic Adviser Kevin Hassett stated that the Federal Reserve (Fed) has plenty of room to cut rates this month and will likely need to do so again.

EUR/USD posts modest gains on Wednesday as the last monetary policy meeting by the Fed, looms with investors seem confident that the central bank will reduce rates. Consequently, the Greenback is pressured as seen by the pair which trades at 1.1658 up 0.27%.