Job Market - Fed leaders anticipate more economic growth in 2026 and stable unemployment levels, but express concerns about slowing labor demand and participation. Lower rates could help stimulate hiring [2] - Fed Chair Powell noted that chatbots are not yet replacing jobs, despite some high-profile layoffs in Corporate America. Overall layoff rates remain relatively low [3] Inflation - Inflation remains slightly above the Fed's 2% target, with limited data available due to the government shutdown. Lower rates could risk rising consumer prices, but Powell indicated that strong consumer spending is currently driving inflation, primarily influenced by tariff policy rather than broad economic weakness [4] Markets - Despite a hawkish rate cut, markets rallied sharply, with the S&P 500 nearing a record close and the Dow gaining almost 500 points. Factors from the meeting contributed to increased investor bullishness [5] Future of the Fed - With Powell's term ending in May, a successor will be named in January. Powell aims to leave the economy in good shape, targeting a return to 2% inflation and a strong labor market. Significant division among Federal Open Market Committee members was noted, with three dissenting votes, indicating ongoing tension between employment and inflation risks [6] - Powell emphasized that discussions within the Fed are constructive and respectful, and indicated that a rate hike is not anticipated in the near future. The focus remains on strengthening the economy rather than solely combating inflation [7]