After #FedRateCut The US Federal Reserve (FED) cut interest rates by 25 basis points to the 3.5%-3.75% range at its FOMC meeting on December 10, 2025. This was the third consecutive cut, resulting in a total easing of interest rates of 175 basis points. The decision reflects a balance between preventing job losses and controlling inflation; however, the divided committee signaled "stability" for 2026. This move, known as the "FED effect," boosted risk appetite: the S&P 500 approached record highs, and the Dow Jones jumped 500 points. The dollar weakened, bond yields rose, and stock markets closed optimistically. Experts remain cautious due to geopolitical uncertainties: future cuts may be limited. While this decision triggered a short-term rally in global markets, uncertainties remain for long-term growth.
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After #FedRateCut The US Federal Reserve (FED) cut interest rates by 25 basis points to the 3.5%-3.75% range at its FOMC meeting on December 10, 2025. This was the third consecutive cut, resulting in a total easing of interest rates of 175 basis points. The decision reflects a balance between preventing job losses and controlling inflation; however, the divided committee signaled "stability" for 2026. This move, known as the "FED effect," boosted risk appetite: the S&P 500 approached record highs, and the Dow Jones jumped 500 points. The dollar weakened, bond yields rose, and stock markets closed optimistically. Experts remain cautious due to geopolitical uncertainties: future cuts may be limited. While this decision triggered a short-term rally in global markets, uncertainties remain for long-term growth.