The Fed delivered its third rate cut in a row — a “hawkish” quarter-point trim that lifted markets but left everyone guessing about what comes next.

On Wednesday, officials trimmed rates by 0.25%, landing them in that 3.5% – 3.75% range 💸.

And yep — that makes three cuts in a row. ✂️

Markets absolutely loved it. All three major indices closed green, and investors breathed out for the first time in a week. 📈

But the mood inside the Fed? That’s another story.

Officials made it clear they’re being cautious. Inflation is still sticking around, the job market is slowing a bit, and global uncertainty isn’t helping. So while they cut rates, they’re not promising what comes next. ⚠️

The labour market concerns in particular are very real — employers aren’t hiring much, but they also aren’t laying people off in big waves.

Meanwhile, inside the Fed, things weren’t totally aligned either. The vote was split more than usual, suggesting we’re in a tricky moment. One member wanted a bigger cut, two wanted no cut at all. 😬

Still, Chair Jerome Powell said the economy is moving in the right direction — just not fast enough to make any bold predictions. In other words, it’s a “we’ll see what happens, and we’re not rushing anything” kind of moment.

But for now markets took the cut as good news, with stocks rising and borrowing costs dipping a bit. It’s not dramatic, but it does ease a little pressure for businesses and people. 😌