Download Full Report Here:
https://media.marketnews.com/Fed_Review_Oct2025_6cbbafec6b.pdf EXECUTIVE
SUMMARY: * The Fed's October 29 policy decisions were more or less as expected,
with the Fed funds rate range cut by 25bp for a 2nd consecutive meeting to
3.75-4.00%, and an announcement that quantitative tightening would end
imminently. * However, there was a significant surprise as Chair Powell began
the post-meeting press conference by highlighting the FOMC's divisions on the
way forward: "in the Committee's discussions at this meeting, there were
strongly differing views about how to proceed in December. A further reduction
in the policy rate at the December meeting is not a foregone conclusion, far
from it. Policy is not on a preset course." * With markets having come into the
meeting expecting a follow-up cut in December as nearly a done deal, this led to
a sharp hawkish reaction across rates and FX. There are now only ~16bp of cuts
priced for December vs 22.5bp (nearly a foregone conclusion) pre-meeting. * See
PDF report for: * MNI View * Market Reaction * MNI Instant Answers * Press
Conference Transcript * FOMC Meeting Links * Policy Statement Changes
Oct-29 21:00
