Fed’s Rate Cut Lands With a Thud on Wall Street

​A Cut That Didn’t Cut It
The Federal Reserve finally pulled the trigger on a quarter-point rate cut, nudging the funds rate down to a range of 4%–4.25%. It was exactly what markets expected — which is why the reaction was so underwhelming.

Miran Wants More
The vote was nearly unanimous. The lone dissenter? Stephen Miran, Trump’s freshly confirmed Fed pick, who pushed for a bolder half-point cut. Some thought other Trump appointees might join him, but Powell kept the camp mostly united.

Powell Plays It Safe
At the press conference, Chair Jerome Powell described the move as “risk management,” framing it less as an emergency rescue and more as a precaution. Translation: the Fed is cutting because it can, not because it must.

Markets Shrug
Wall Street didn’t exactly break out the champagne. The S&P 500 slipped 0.1%, the Nasdaq dropped 0.3%, and only the Dow managed a 0.6% gain. Investors are waiting to see if Trump’s loud calls for deeper cuts gain traction — or if Powell keeps holding the line.

Looking Ahead to 2026
Here’s the kicker: Fed officials only see one more cut next year, a far cry from the multiple moves traders had been pricing in. The dot plot revealed plenty of disagreement inside the Fed, adding more uncertainty to the outlook.

Beyond the Fed
- China reportedly ordered companies to stop buying Nvidia’s custom RTX Pro 600D chip, sending a chill through tech stocks.
- Meta unveiled its first consumer-ready smart glasses, priced at $799, complete with gesture controls via a wristband.
- Overseas, Asia delivered a mixed bag: Japan’s Nikkei hit another record high, while Hong Kong’s Hang Seng sank more than 1%.

The Bottom Line
​The Fed gave markets what they wanted — but not the fireworks traders were hoping for. With Powell cautious, Miran pushing for more, and global headlines piling up, Wall Street is left wondering if this cut is the start of a series or just a one-off.