$KITE | Fed Holds Rates, Signals Possible Easing in 2026
$PLAY After a two-day meeting, the Federal Reserve left interest rates unchanged at 3.5%–3.75%, bringing an end to a streak of three consecutive $WLD rate cuts—fully in line with market expectations.
🔻 Key Highlights:
The U.S. economy continues to expand at a steady pace, the labor market has stabilized, and the Fed removed language warning of a sharp economic slowdown.
Inflation remains sticky near 3%, still above the 2% target, keeping policymakers cautious.
The Fed signaled it will not reassess its next rate move before June 2026.
Internal divisions surfaced, with two governors pushing for an additional 0.25% cut.🤼
🔻 The decision comes under intense political pressure, as Chair Jerome Powell heads into the final two meetings of his turbulent term.
🔻 Despite the noise, economic momentum remains strong: GDP rose 4.4% in Q3 and could accelerate to 5.4% in Q4. Still, elevated inflation and the impact of tariff policies continue to complicate the Fed’s path forward.👇
👉 Markets now look to mid-2026 for clearer signals on the next phase of monetary easing.
