The Federal Reserve's Monetary Policy Committee remains on the expected course with an emphasis on the labor recovery

The Federal Reserve’s decision to cut interest rates has confirmed market forecasts. According to Golden Ten Data, Michael Rosen, head of investments at Angeles Investments, noted that the 25 basis point reduction was consistent with the scenarios anticipated by analysts and traders.

The most revealing part of the statement was the explicit emphasis on the weakness of the labor market as a key factor for this monetary easing. This justification marks a shift in the central bank’s priorities, reflecting growing concerns about employment performance in the US economy.

Michael Rosen highlighted that the 9 to 3 voting in favor of the 25 basis points reflects a certain level of internal consensus, though not unanimous. This result suggests that the Federal Reserve remains willing to continue easing policies in the short term, conditioned on the behavior of labor indicators.

Regarding future prospects, market projections have not experienced significant changes. The expectation of an additional 25 basis point easing next year remains unchanged, indicating that traders consider the current monetary policy trajectory sustainable, depending on how the employment situation evolves in the coming quarters.