Fed Cuts 25bps, Ends QT As Expected; Two FOMC Officials Dissent

The Federal Reserve (Fed) cut the federal funds rate by 25 basis points, as predicted. This decision followed a dovish market sentiment, fully pricing in the cut. The Fed also announced the end of quantitative tightening (QT) on December 1st. Two members dissented, one favoring a larger cut and another advocating for no change. The statement noted a slowdown in job gains with the unemployment rate remaining low. The Fed is ending QT due to deteriorating money market conditions. The statement highlighted that economic activity is expanding at a moderate pace. Inflation was noted to have moved up since earlier in the year. The market reaction was muted, with stocks barely moving. Some analysts expressed surprise at the dissent and considered it hawkish.