Core Insights - The Federal Reserve's interest rate decisions significantly influence economic activity and corporate profitability, with a friendlier Fed generally benefiting investors [1][4]. Interest Rate Decisions - The Federal Reserve meets approximately every eight weeks to set interest rates, indirectly affecting borrowing costs for businesses and consumers [2]. - The Fed Funds Rate, which is the rate banks charge each other for overnight reserves, impacts Treasury yields, lending rates, and overall interest expenses [4]. Rate Changes and Economic Impact - In 2025, the Federal Reserve cut rates by 0.75%, but the outlook for further reductions in 2026 remains uncertain [5]. - The Fed's dual mandate aims to balance low unemployment and low inflation, but these goals often conflict, especially in 2025 as inflation rose while unemployment also increased [9]. Inflation Trends - Inflation was recorded at 2.3% in April 2025, rising to 3% by September before decreasing to 2.7% in October, influenced by incomplete data collection due to a government shutdown [10].