Fed, BoC Cut Rates; Fed Halts Runoff

The U.S. Federal Reserve cut its policy rate 25 basis points to 3.75%–4.00% but signalled further easing is not guaranteed, with Chair Jerome Powell saying a December cut is "far from certain" amid limited data from the U.S. government shutdown and divided FOMC views. Policymakers also halted balance-sheet runoff and restarted limited purchases, easing liquidity pressure and prompting markets to recalibrate rate-cut expectations and liquidity pricing. U.S. equities closed mixed-to-lower, with big tech hit—Meta fell more than 11%—while dollar and bond markets churned. The Bank of Canada cut its policy rate 25 bps to 2.25% and signalled it may pause if inflation behaves, leaving USD/CAD hovering below its 200-day moving average. Global central banks and investors treated the Fed's cautious stance as a source of ongoing uncertainty, with analysts expecting only modest emerging-market inflows absent clearer inflation and labour data.