The Federal Reserve lowered its benchmark rate by 25 basis points, as expected, and signaled another 50 basis points of cuts by yearend. The decision underscored growing divisions within the central bank after newly appointed Governor Stephen Miran voted for a deeper 50-basis-point reduction, a move likely to fuel concerns about the Fed’s independence.
The US 10-year Treasury yield briefly dipped below 4% for the first time in five months before stabilizing at 4.03%, reflecting investor bets on an extended easing cycle.
In Asia, Japan’s Nikkei 225 closed at a fresh all-time high of 45,300 points, while Chinese tech stocks surged again. Momentum was boosted after Beijing barred domestic companies from purchasing Nvidia’s chips, spurring expectations of stronger demand for homegrown alternatives.
Gold eased less than 1% from record levels as markets absorbed the Fed’s policy shift and Chair Jerome Powell’s comments.
European equities climbed about 1%, with US futures also pointing to a strong open. Strategists noted that further dollar weakness could create attractive opportunities for emerging-market assets.
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