The Federal Reserve cut interest rates by 25 basis points, as widely expected, bringing the target range down to 3.75%–4.00%. However, the decision revealed a notable split within the Committee. Fed Governor Miran dissented in favor of a larger 50-basis-point cut, while Kansas City Fed President Schmid voted to keep rates unchanged. Schmid will participate in the December meeting but is set to be replaced in January.
The contrasting views at both ends of the policy spectrum highlight the diverging opinions on how quickly the Fed should ease, and that internal tension has helped push the U.S. dollar higher in post-decision trading.
In today’s video, I break down how the announcement impacted the major currency pairs — including EURUSD, USDJPY, GBPUSD, USDCAD, USDCHF, and AUDUSD — and discuss the key technical levels traders are watching as the market digests the Fed’s mixed message.
This article was written by Greg Michalowski at investinglive.com.