Fed Cuts Rates, December QT Uncertain

The Federal Open Market Committee cut the federal funds rate 25 basis points to a 3.75%–4.00% target range at its October meeting. Chair Jerome Powell warned that a further reduction in December “is not a foregone conclusion,” and the decision showed at least two dissents — one favoring a larger cut and another opposing any cut. Later reports did not confirm an immediate end to the Fed’s quantitative‑tightening program in December. Risk assets fell modestly as investors parsed the message: bitcoin weakened about 2.4% (trading near $111,514 at the time of reporting) and equities pared gains. Policymakers cited a thin labor‑market data backdrop amid the government shutdown and trade tensions, including President Trump’s announced tariff reductions and a reported partial trade understanding with China. Markets will watch upcoming major corporate results and the ECB’s policy decision for further direction.