Analyst Anna Wong said, “My assessment is that the overall tone of the policy statement and updated forecast is dovish — although there is also some potential hawkish information. On the dovish side, the Commission sharply raised the growth trajectory while lowering the inflation outlook and keeping the 'bitmap chart' unchanged. The Federal Open Market Committee also announced the commencement of reserve management purchases. On the other hand, a signal in the policy statement indicates that the Commission is inclined to suspend interest rate cuts for a long time.” She continued: “Although the 'bitmap' shows that interest rates will only be cut once in 2026 — and the market is expecting two — our view is that the Fed will eventually cut interest rates by 100 basis points next year. This is because we anticipate weak wage growth and currently see no clear signs of rekindling inflation in the first half of 2026.”

Analyst Anna Wong said, “My assessment is that the overall tone of the policy statement and updated forecast is dovish — although there is also some potential hawkish information. On the dovish side, the Commission sharply raised the growth trajectory while lowering the inflation outlook and keeping the 'bitmap chart' unchanged. The Federal Open Market Committee also announced the commencement of reserve management purchases. On the other hand, a signal in the policy statement indicates that the Commission is inclined to suspend interest rate cuts for a long time.” She continued: “Although the 'bitmap' shows that interest rates will only be cut once in 2026 — and the market is expecting two — our view is that the Fed will eventually cut interest rates by 100 basis points next year. This is because we anticipate weak wage growth and currently see no clear signs of rekindling inflation in the first half of 2026.”