Fed Cuts Rates; RBA Cuts Pushed Out

The Federal Reserve cut its policy rate by 25 basis points to a 3.75%–4.00% target range and said it would halt balance-sheet runoff and restart limited Treasury purchases around early December to address emerging liquidity strains. The decision recorded two dissents and Chair Jerome Powell warned a December cut is not guaranteed, prompting stocks to wobble and market-implied probabilities for further easing to decline. The move has also supported modest gains in Bitcoin and other crypto assets, though further upside will depend on the Fed’s next steps. In Australia, a surprise Q3 inflation uptick—core measures running above RBA forecasts—together with an unexpected rise in unemployment to 4.5% has led bond markets to price out Reserve Bank of Australia rate cuts until at least mid-2026. RBA Governor Michele Bullock said the labour market is slowing but will not “fall off a cliff,” and the board will wait for more monthly data ahead of its Nov. 3–4 meeting to judge whether disinflation has stalled.