Group 1: Federal Reserve Actions - The Federal Reserve lowered the federal funds rate by 25 basis points to a range of 3.5-3.75%, aligning with market expectations[2] - The dot plot indicates that the Fed officials expect to cut rates once in both 2026 and 2027, maintaining the same outlook as in September[2] - Three officials voted against the decision, with one advocating for a 50 basis point cut[2] Group 2: Economic Projections - The Fed raised its GDP growth forecast for 2026 significantly, while keeping the unemployment rate forecast unchanged[2] - PCE inflation and core PCE inflation were slightly downgraded in the updated economic projections[2] - The updated GDP growth forecast for 2026 is 2.3%, compared to the previous estimate of 1.8%[12] Group 3: Market Reactions - Following the meeting, U.S. stock markets and gold prices rose, while U.S. Treasury yields and the dollar index fell[4] - The S&P 500, Nasdaq, and Dow Jones indices increased by 0.7%, 0.3%, and 1.1% respectively[4] - The implied probability of a rate cut in January 2026 remains around 20%, with a 50% chance for March[4] Group 4: Future Outlook - The overall tone of the meeting was neutral to slightly dovish, indicating a cautious approach towards further rate cuts[5] - The Fed's independence may face challenges in 2026, particularly with the upcoming chair nomination and midterm elections[5] - Increased market volatility is expected as more economic data is released and the new chair's stance is revealed[5]