The Federal Reserve cut its key overnight borrowing rate to 3.5%-3.75%, sparking speculation about future rate cuts. The decision, with the most dissents since 2019, reflects a split on the need for further easing. Inflation is above target at 2.8%, expected to slow to 2.4% by 2026, with unemployment at 4.4%.

The Fed’s post-meeting statement indicates a higher bar for future cuts, with median forecasts suggesting just one rate cut in 2026. Rate-sensitive investments rallied, but some analysts believe the optimism may be premature. President Trump is set to interview potential successors to Chairman Jerome Powell, including Kevin Warsh and Kevin Hassett.

Read more at Yahoo Finance: Will Fed’s Latest Rate Cut Be Powell’s Last?