Analyst: Fed Statement Slightly Dovish, Expects 100 Basis Point Rate Cut Next Year

BlockBeats News, December 11th, Analyst Anna Wong stated: "My assessment is that the overall tone of the policy statement and updates leans dovish, although there are also some potential hawkish cues. On the dovish side, the committee significantly revised up the growth trajectory, while revising down the inflation outlook, and kept the 'dot plot' unchanged. The Federal Open Market Committee also announced the start of reserve management purchases."

On the other hand, one signal in the policy statement indicates the committee's inclination to indefinitely pause rate cuts." She went on to point out: "Although the 'dot plot' shows only one rate cut in 2026—while the market expects two—our view is that the Fed will ultimately cut rates by 100 basis points next year. This is because we expect subdued wage growth and currently see no clear signs of a significant inflation resurgence in the first half of 2026." (FX Street)