US Fed cuts rates again, but future moves look cautious
The US Federal Reserve just dropped interest rates for the third time this year, lowering them to 3.50-3.75%.
The goal? Address persistent inflation and economic uncertainty.
The decision wasn't unanimous, with a divided vote showing real debate inside the Fed.
What's next? Not as many cuts as people hoped
Most Fed leaders now think there'll be only one more rate cut in 2026 and another in 2027—less than what markets expected.
High inflation and patchy economic data (thanks to a long government shutdown) are making them extra careful, especially with leadership changes coming up.
Politics and uncertainty ahead
With midterm elections around the corner and voices like Donald Trump pushing for bigger cuts, all eyes are on how the Fed will handle inflation versus jobs.
Analysts say things could get unpredictable next year, so investors and policymakers are watching closely.