#Fed The interest rate has been cut for the second time – a signal of a gradual soft pivot

The Federal Reserve (Fed) has just reduced interest rates by another 25 basis points, marking the second cut of 2025. This decision indicates that the dovish trend is gradually becoming the dominant strategy of the Fed, even though there is still no absolute consensus internally. Governor Stephen Miran – appointed by former President Trump – opposed it because he wanted to keep the interest rate unchanged, while Jeffrey Schmidt argued for a stronger cut.

The Fed also announced the end of the quantitative tightening (QT) program on December 1, paving the way for a more comfortable liquidity environment. However, the agency acknowledged that inflation remains "quite high" – a signal that monetary policy will still be conducted cautiously.

Investors see this as a reasonable move: the Fed is easing enough to support growth but still keeps the "emergency brake" to guard against rising prices.

👉 The dollar immediately cooled off, bond yields fell, and the risk appetite in the global financial market is heating up again.