Ahead of this FOMC meeting, a 25bps rate cut is almost a certainty. The market’s focus is on the Fed’s outlook for 2025.Compared to September’s FOMC outlook, the Fed has reduced its expected number of rate cuts, primarily due to concerns about an overheating economy. Instead of the previously projected four rate cuts in 2025, this has now been reduced to two.The latest projections show:An upward revision in 2025 GDP growth expectations,A lower unemployment rate forecast,Higher inflation expectations.Unless we see a slowdown in inflation and employment, the earliest rate cut will likely be in March, and even that isn’t guaranteed if inflation and employment fail to cool off.1. Why Did This Long-Awaited Hawkish Stance Lead to Such a Steep Market Drop?The market has been overly optimistic sin