The Fed reaffirmed its outlook for only one rate cut in 2026 and announced it will begin purchasing $40 billion in Treasuries each month to rebuild reserves across the banking system.

The DXY slipped to 98.5 after the Federal Reserve delivered its third rate cut of the year, with traders now pricing in two reductions for 2026, double what the central bank currently projects. The updated economic outlook showed stronger growth and slightly softer, though still high, inflation, while the Fed confirmed it will begin purchasing short-term Treasury bills on December 12.

Chair Jerome Powell noted that hiring momentum continues to fade and inflation is easing, even as tariffs exert fresh pressure on goods prices. He stressed that any future adjustments will depend on upcoming data, underscoring the Fed’s focus on how these economic shifts evolve.

Take a look at today's analysis for more updates!