UOB(US:UOVEY) Xin Lang Cai Jing·2025-10-30 03:46Group 1 - The Federal Reserve decided to lower the federal funds rate target range by 25 basis points to 3.75%-4.00%, marking the second rate cut in 2025 following September's decision [1] - The Fed announced it will stop monthly reductions of its balance sheet starting December 1, ending the quantitative tightening process that began in 2022 [1] - UOB's macro research report indicates a possibility of another 25 basis point rate cut in December, with two additional cuts expected in 2026 [1][2] Group 2 - The rate decision was not unanimous, with a vote of 10 to 2; dissenting opinions included a call for a 50 basis point cut and a preference to maintain the current rate [1] - Fed Chair Powell described the October rate cut as a "risk management measure" aimed at aligning policy closer to a neutral stance, acknowledging data limitations due to the government shutdown [2] - Market expectations for a December rate cut decreased from "almost certain" to 67.1% following Powell's cautious remarks, although UOB maintains its forecast for a 25 basis point cut [2]