Core Viewpoint - The Federal Reserve is expected to implement a $40 billion purchase of Treasury bills, indicating a shift towards quantitative easing (QE) after halting quantitative tightening (QT) in December 2022, which may positively impact the housing market and overall economic activity [6][8]. Interest Rate Decisions - Three dissenters voted against the majority, with Steven Myron advocating for a 50 basis point cut, while others, including Austin Goulsby and Jeffrey Schmidt, voted for no cuts, reflecting concerns about persistent inflation [1][2][5]. - The majority of the committee, consisting of nine members, supported a 25 basis point cut, indicating a divided stance on the economic outlook [6]. Economic Projections - The median GDP projections are set at 1.7% for 2025 and 2.3% for 2026, suggesting a gradual improvement in economic activity [10]. - Unemployment projections are expected to decrease to 4.5% in 2025 and 4.4% in 2026, indicating a positive trend in the labor market [10]. Market Reactions - The stock market showed a slight rally, with E-Minis up about 10 points, reflecting investor optimism despite the mixed signals regarding interest rate cuts [9]. - The overall economic indicators suggest moderate expansion, which may lead to a delay in any rate cuts, pushing expectations from March to April [11][14].

Core Points - The Federal Reserve has cut interest rates for the third consecutive meeting, influencing consumer prices, the job market, and Corporate America into 2026 and beyond [1] Interest Rates and Consumer Impact - Thirty-year fixed mortgages, two-year auto loans, and credit card rates are expected to fluctuate with the federal funds rate, with mortgage rates cooling in anticipation of these cuts despite inflation remaining above the Fed's 2% target [2] - A quarter-point cut may lead to lower returns for savers in high-yield savings accounts or certificates of deposit, while making it cheaper to pay off credit cards and increasing accessibility to home equity lines and small business loans [3] Labor Market Effects - The labor market has shown signs of weakness, with job seekers facing tough application processes and a decrease in labor force participation, although the unemployment rate remains just above 4% [5] - Sustained rate cuts could improve the job market by facilitating borrowing and investment for businesses, potentially leading to increased hiring and consumer spending, which are essential for economic health [6] Stock Market Implications - Historically, lower interest rates are favorable for the stock market, as cheaper borrowing encourages both companies and individuals to invest, potentially boosting Wall Street in 2026 [7]

Let's start with the Euro's own economy. It looks as though things are going rather well. >> So, I'm I'm used to say we are in a good place.And of course, I talk about our monetary policy. I talk about price stability, which is the primary objective of the European Central Bank. And with a track record of around 2% inflation and a medium-term projection at 2% I would say again that we are in a good place.Now of course that is in with the landscape of a Eurozone economy which is doing better than was feared. ...

RT Bloomberg Opinion (@opinion)@Claudia_Sahm @AllisonSchrager “Part of the reason that we didn’t make any progress this year [on inflation] is because the tariffs were rolled out,” @Claudia_Sahm says.Tune in here 🎥 https://t.co/UP7Z2ybT22 ...

Our next guest says today's cut is an insurance cut against a weakening labor market. Let's bring in Claudia Som, chief economist at New Century Adviserss, creator of the SOM rule. Claudia, it's great to see you.Let me just set this up a little bit because we had Jason Ferman earlier saying we shouldn't cut because of inflation and because of the deficit. Those pressures are still too high. Um, obviously others are are more doubbish.They think that we can and should. Explain where you come down on this. >> ...

Core Points - The Federal Reserve announced its third interest rate cut of the year, lowering the benchmark federal funds rate by 25 basis points to a range of 3.5% to 3.75% to support the labor market despite high inflation [1] - The decision follows previous rate cuts in September and October, marking the first cuts of the year [1] - Policymakers are responding to a slowdown in the labor market and rising inflation, influenced by changes in trade and immigration policy [2] Summary by Sections Interest Rate Decision - The Federal Open Market Committee (FOMC) voted to cut the interest rate by 25 basis points, with nine policymakers in favor and three dissenting [4] - Dissenters included Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeffrey Schmid, who preferred to keep rates unchanged, while Fed Governor Stephen Miran advocated for a larger cut of 50 basis points [4] Economic Context - Economic data indicates a slowdown in job gains and an increase in the unemployment rate through September, alongside rising inflation [5] - The Fed faces challenges in achieving its dual mandate of stable prices and maximum employment amid these economic dynamics [2][5]

Core Viewpoint - The US Federal Reserve has cut interest rates by a quarter point for the third time this year, reflecting internal divisions on how to manage the economy amid rising inflation and unemployment [1][4]. Group 1: Interest Rate Decisions - The Federal Open Market Committee (FOMC) voted nine to three to lower rates to a range of 3.5% to 3.75%, indicating a split among committee members who usually vote unanimously [1]. - New projections suggest hesitance to cut rates further next year, which may create tensions between the Fed and the White House [2]. Group 2: Economic Conditions - Recent economic data shows inflation increased from 2.3% in April to 3% in September, and unemployment rose from 4% in January to 4.4% in September, complicating the Fed's decision-making [4]. - The Fed is facing challenges due to a lack of comprehensive price and labor market data, exacerbated by the government shutdown [3]. Group 3: Political Influence - President Trump and his allies have publicly criticized Fed officials for not lowering interest rates, despite rising inflation, attributing price increases to factors from the previous administration [6]. - Trump has suggested Kevin Hassett as a potential nominee to replace Fed Chair Jerome Powell, whose term ends in May [10].

The Federal Reserve on Wednesday slashed interest rates by a quarter point even as officials remain conflicted over whether to prioritize stubborn inflation or weakness in the labor market.Although they did not reach a full consensus, central bankers lowered rates to a new range of 3.5% to 3.75% as they remain more concerned about underlying strain in employment.Austan Goolsbee and Jeffrey Schmid opposed the cut, while Stephen Miran voted for a half-point cut.The Federal Reserve on Wednesday slashed interes ...

Economy & Finance - The President is focusing on affordability, acknowledging that prices are too high and touting a new slogan: "Make America Affordable Again" [1][2][23][25] - Housing and groceries are up nearly 30%, while electricity and gas are up almost 40% [1] - The Federal Reserve is expected to make a major decision on interest rates, potentially cutting rates by a quarter point to support the job market [1][2] - AAA predicts a record-breaking 122 million Americans will travel during the holiday season, with air travel expected to surpass 8 million people [1][2] - The Powerball prize is soaring to nearly $1 billion [1] Social Media & Technology - Australia becomes the first nation to ban social media for children under 16 [1][7] - A million social media accounts have been deactivated across Australia due to the ban [7] - Two-thirds of the world's internet traffic flows through Loudoun County, Virginia, known as A I Alley [8] - A new Lending Tree survey reveals that 27% of self-check-out users have purposefully taken an item without scanning [39][41] Weather & Environment - Millions are on alert for another blast of arctic air and a winter storm set to bring more than a foot (approximately 30 centimeters) of snow to parts of the Northeast [1] - 18 million people from Montana to the Northeast are under winter storm watches or warnings [3] - Potential historic river flooding is expected in the Pacific Northwest, with some areas potentially seeing 4 to 8 inches (approximately 10 to 20 centimeters) of rain [8][9]

Markets are widely expecting a third quarter point cut in the last Fed meeting of the year. The definitive odds are at 91% today, but our next guest says the market has it wrong and easing is a mistake because inflation is well above target. Joining us now is Jason Ferman, former chair of the Council of Economic Adviserss under President Obama, now with Harvard's Kennedy School.Jason, it's great to have you here. I did ask our previous more dovish guest, I don't know if you caught that, um why he thinks tha ...