U.S. Fed cuts rates to 3.75%–4.00% but flags data-gap amid shutdown

The Fed cuts interest rates amid a shutdown-driven data-gap, emphasising caution despite easing. Markets await future guidance.

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U.S. Fed cuts rates to 3.75%–4.00% but flags data-gap amid shutdown

Federal Reserve announced a 25-basis-point rate cut to a target range of 3.75%-4.00% and signalled it will resume limited Treasury purchases. The decision also highlighted risks from the ongoing U.S. government shutdown, noting the lack of full economic data and emphasising continued caution. Markets interpreted the move as supportive but also priced in the uncertainty surrounding future policy and growth. The statement underscored that the cut was expected, while forward guidance and data‐dependency remain key focus points.