The Federal Reserve's decision to cut interest rates by 25 basis points has garnered various analyst reactions. Some analysts noted the removal of language expressing confidence in inflation moving towards the 2% target, suggesting a cautious approach by the Fed. Others argue that the Fed may need to prioritize policy responsiveness to avoid falling behind economic changes caused by fiscal measures. The rate cut is seen as less aggressive compared to earlier hikes, and the Fed's future path may involve more cautious adjustments rather than rapid cuts. Some analysts expect further rate cuts in December and potentially a 100 basis point cut in 2025. The Fed's upcoming quarterly economic forecasts will play a crucial role in its next policy moves.
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