Fed Rate Cut Reflects Concern About U.S. Economy's Underlying Momentum -- Market Talk

Dow Jones12-11

0626 GMT - With its third straight rate cut, the Federal Reserve is sending a clear message: it's no longer just watching inflation-it's managing risk, says Bolvin Wealth Management's Gina Bolvin in a note. This decision reflects growing concern about the economy's underlying momentum, she says. While inflation has cooled, the Fed is also acknowledging that policy lags, geopolitical uncertainty, and tighter credit conditions are weighing more heavily on the outlook, she says. "This is a Fed trying to guide the economy to a soft landing without oversteering." Rate cuts may continue-but gradually, and only if the data allows, she says. (emese.bartha@wsj.com)

 

(END) Dow Jones Newswires

December 11, 2025 01:26 ET (06:26 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment