Group 1 - The Federal Open Market Committee (FOMC) announced a 25 basis point reduction in the federal funds rate target range to 3.50%–3.75%, marking a shift from an "anti-inflation priority" to "preventive support for employment" [1] - The median forecast for real GDP growth in 2025 was significantly downgraded from 2.3% to 1.7%, the largest single revision in this cycle, while the unemployment rate forecast was raised from 4.4% to 4.5% [1] - The long-term median forecast for the federal funds rate remains stable at 3.0%, indicating acceptance of a "higher neutral rate" as the new normal [1] Group 2 - The FOMC's decision reflects internal divisions, with nine members supporting a 25 basis point cut, while others advocated for a more aggressive 50 basis point reduction or maintaining the current rate [2] - The FOMC announced plans to purchase short-term government bonds to maintain sufficient reserves, signaling a substantial exit from quantitative tightening (QT) [2] - The adjustment by the Federal Reserve may reshape cross-border capital flows and financing costs in emerging markets, although the emphasis on "data dependence" suggests caution against interpreting this as the start of a new easing cycle [2]