POWELL’S RATE CUT TRIUMPHS AMID DIVISION — THREE CUTS IN 2025 COMPLETED 📉

Jerome Powell has led the Federal Reserve through three successive rate cuts this year, reducing the policy rate to the 3.5%–3.75% range — the lowest in years — as the U.S. economy shows mixed signals. The latest cut reflected persistent inflation above target and rising unemployment risk.

Despite uncertainty and missing data from the government shutdown, Powell emphasised that the Fed is “well-positioned to wait and see” how the economy evolves before acting further. Officials also forecast only one more cut in 2026 unless fresh economic weakness emerges.

🔍 Why this matters:

• Repeated easing underscores how much Powell’s Fed is focused on preventing a deeper slowdown.

• Markets initially rallied on the rate cuts, but now expectations are resetting as Powell refuses to promise a smooth path down.

• The divergence of views inside the Fed means the outlook isn’t clear-cut—it’s data-dependent, not predetermined.

📌 What investors should do now:

✔ Expect volatility — when central banks cut but don’t commit to future cuts, markets trade uncertainty.

✔ Hedge rate-sensitive assets (mortgage REITs, high-duration bonds, growth stocks).

✔ Watch inflation and jobs closely — they’re now policy trigger events, not just data points.

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