CNBC Daily Open: Much to like in Fed's meeting amid warnings of restraint

Core Viewpoint - The U.S. Federal Reserve's recent interest rate cut is perceived as a "hawkish cut," with mixed reactions from investors, but the announcement of Treasury bill purchases is seen as a positive development for financial markets [1][2][3]. Interest Rate Decisions - The Federal Reserve lowered interest rates by a quarter percentage point, although some regional bank presidents preferred to maintain current rates [2]. - The Fed's "dot plot" indicates only one additional rate cut in 2026 and another in 2027, reflecting cautious optimism [2]. Economic Outlook - Fed Chair Jerome Powell emphasized the resilience of the U.S. economy, raising the growth forecast for 2026 from 1.8% to 2.3% [4]. - Powell dismissed speculation about future rate hikes, indicating that such moves are not currently anticipated [4]. Market Reactions - Following the Fed meeting, U.S. markets experienced a rise, attributed to the announcement of $40 billion in Treasury bill purchases, which is expected to ease financial conditions [3]. - Analysts predict a potential "Santa Claus rally," with the S&P 500 expected to surpass the 7,000 milestone in the coming weeks, providing a positive outlook for investors [5].