Core Points - The Federal Reserve announced a 25 basis point cut in the federal funds rate to a target range of 4.00% to 4.25%, marking the first rate cut since January 2025 [1] - The decision was influenced by signs of slowing economic activity, job growth, and rising inflation [1] - Fed Chairman Powell emphasized that the rate cut is a "risk management" measure and not a response to political pressure [1] Economic Indicators - The Fed noted an increase in downside risks to employment, with job growth slowing and a slight rise in the unemployment rate [2] - Recent data indicates signs of weakness in the U.S. labor market, which contributed to the decision to restart rate cuts [2] - Powell highlighted that the changes in the labor market are not solely due to immigration factors but are also linked to a noticeable slowdown in demand [2] Rate Cut Context - The Fed had previously cut rates three times last year, with a total reduction of 100 basis points, but maintained a steady stance this year until now [3] - Powell acknowledged that new tariff policies have raised some prices, contributing to a projected rise in inflation, but this effect is expected to be temporary [3] Future Rate Expectations - The rate decision was supported by 11 out of 12 voting members, with one member advocating for a larger cut of 50 basis points [4] - The Fed anticipates two more 25 basis point cuts within the year, with projections for additional cuts in the following years [4] - The Fed has revised its GDP growth expectations upward and adjusted unemployment and inflation forecasts, expecting inflation to return to the long-term target of 2% by 2028 [4]

Core Viewpoint - The article suggests that the European Central Bank (ECB) is expected to maintain the deposit rate at 2.00% during the upcoming meeting, with minimal market impact anticipated due to the lack of new policy signals [1] Summary by Relevant Sections - **Interest Rate Decision** - The ECB is likely to keep the deposit rate unchanged at 2.00% [1] - **Market Reaction** - The market response is expected to be relatively muted as the meeting may not provide new policy insights [1] - **Economic Outlook** - The ECB is anticipated to highlight the resilience of the Eurozone economy while also addressing "exceptionally severe global uncertainties" [1] - **Policy Approach** - The ECB is expected to continue its "data-driven, meeting-by-meeting decision" policy path [1]

Core Viewpoint - The European Central Bank (ECB) will make decisions in a gradual manner during successive meetings [1] Group 1 - The ECB's approach indicates a cautious and measured strategy in monetary policy adjustments [1]

Core Viewpoint - The European Central Bank (ECB) will adopt a data-dependent and meeting-by-meeting decision-making approach [1] Group 1 - The ECB emphasizes the importance of relying on economic data to guide its monetary policy decisions [1] - The decision-making process will be flexible and responsive to changing economic conditions [1] - This approach aims to ensure that monetary policy remains effective in addressing economic challenges [1]