To The Moon

On Wednesday, December 10 (ET), the Federal Reserve announced a 25bp reduction in the federal funds target range to 3.50%–3.75%. This marks the third rate cut in 2025, bringing the cumulative reduction this year to 75bp. Beneath the surface of this seemingly routine cut, the meeting revealed two key signals: an unusual level of internal division within the Committee and a future policy path that will be highly dependent on data and timing.I. Key Takeaways: The Cut Was Expected, but Divisions Stand OutCompared with the previous meeting at the end of October, the most significant difference in this meeting’s statement is that among the 12 FOMC voting members, three voted against the 25bp rate cut—one more dissent than in October. This is the first time since 2019 that a Fed rate decision has

On Wednesday, December 10 (ET), the Federal Reserve announced a 25bp reduction in the federal funds target range to 3.50%–3.75%. This marks the third rate cut in 2025, bringing the cumulative reduction this year to 75bp. Beneath the surface of this seemingly routine cut, the meeting revealed two key signals: an unusual level of internal division within the Committee and a future policy path that will be highly dependent on data and timing.I. Key Takeaways: The Cut Was Expected, but Divisions Stand OutCompared with the previous meeting at the end of October, the most significant difference in this meeting’s statement is that among the 12 FOMC voting members, three voted against the 25bp rate cut—one more dissent than in October. This is the first time since 2019 that a Fed rate decision has