Mei Ri Jing Ji Xin Wen·2025-10-30 00:36Core Points - The Federal Reserve announced a 25 basis point cut in the federal funds rate, bringing the target range to 3.75%-4.00% [2][5] - Fed Chairman Jerome Powell indicated that the market's expectation for another rate cut in December is "far from a done deal," adding uncertainty to future policy [5][7] - The decision to cut rates was influenced by a moderate expansion in economic activity, a slight increase in unemployment, and rising inflation [5][6] Economic Indicators - Economic activity is expanding at a moderate pace, with employment growth slowing and a slight rise in the unemployment rate [5] - The Congressional Budget Office (CBO) estimated that the recent government shutdown has reduced GDP by at least $7 billion [5] - Inflation remains elevated, with Powell noting that inflation expectations have risen recently [6][11] Market Reactions - Following the Fed's announcement, U.S. stock indices experienced volatility, with the Nasdaq reaching a new high, while the Dow Jones fell by 0.16% [1][13] - Nvidia's stock rose approximately 3%, pushing its market capitalization above $500 billion, while Apple also saw a slight increase, surpassing a $4 trillion market cap [3][13] Future Outlook - Powell emphasized the need to consider uncertainties regarding future rate actions, particularly for the December meeting [7][8] - The Fed has cut rates a total of 150 basis points, and while rates are not yet in a loose range, they are more accommodative than before [7][8] - Market expectations for a December rate cut have decreased from 93% to nearly 70% following Powell's comments [12]