Federal Reserve live coverage: Fed set to cut interest rates for third time this year, 2026 forecast in focus

Core Viewpoint - The Federal Reserve is expected to announce a 0.25% rate cut during its final meeting of the year, with a 90% probability indicated by CME Group data [1][6]. Group 1: Federal Reserve Meeting Expectations - The Fed's final monetary policy decision will be announced on December 10, 2025, with expectations of a third rate cut this year [1]. - The Fed will also release its Summary of Economic Projections (SEP) for 2025, which includes forecasts on economic growth, inflation, and interest rates [2]. - Investors are particularly interested in any changes to the Fed's outlook for 2026, which previously indicated only one rate cut in that year following three in 2025 [2]. Group 2: Market Reactions and Trends - Stock market reactions were muted at the market open, with the Nasdaq Composite down 0.3%, the S&P 500 flat, and the Dow Jones Industrial Average up 0.2% [4]. - Treasury yields remained steady as investors awaited the Fed's policy decision, with the 10-year yield falling to 4.14% and the 30-year yield declining to 4.78% [5]. Group 3: Divergence Among Fed Officials - There is growing concern about potential dissent among Fed officials, as two members voted against the previous rate cut in October [3][11]. - At least three regional Fed presidents have expressed skepticism about the necessity of a rate cut this week, indicating possible dissent in the upcoming decision [10][12].