CNBC Daily Open: Investors find cheer amid Fed's hawkish cut

Core Viewpoint - The U.S. Federal Reserve's recent interest rate cut was characterized as a "hawkish cut," with mixed reactions from investors, but the announcement of Treasury bill purchases provided a positive surprise for the markets [1][2][3]. Group 1: Federal Reserve Actions - The Federal Reserve lowered interest rates, but two regional bank presidents advocated for maintaining the current rates, indicating a cautious approach [2]. - The Fed's "dot plot" projections suggest only one rate cut in 2026 and another in 2027, reflecting a conservative outlook on future monetary policy [2]. - The Fed announced it would begin purchasing $40 billion in Treasury bills, which is expected to increase the money supply and support financial markets [3]. Group 2: Economic Outlook - Fed Chair Jerome Powell expressed confidence in the resilience of the U.S. economy, raising the forecast for economic growth in 2026 to 2.3% from a previous estimate of 1.8% [3]. - Powell emphasized the strength of the economy, suggesting that the last interest rate decision of 2025 could lead to a positive market trend, potentially resulting in a "Santa Claus rally" for the year-end [4]. Group 3: Market Reactions - Following the Fed's meeting, U.S. markets experienced a rise, attributed to the unexpected announcement of Treasury bill purchases and Powell's dismissal of future rate hike speculation [3]. - Analysts predict that the S&P 500 could exceed the 7,000 milestone in the coming weeks, indicating a strong finish to the year for investors [4].