FOMC Grinch Steals Santa Rally: Markets Left in Turmoil

As the year begins to wind down, the anticipation of a quiet wrap-up has been interrupted by a major global financial event. Markets, ever unpredictable, threw a curveball with a monumental move from the US Federal Reserve. The Federal Open Market Committee (FOMC) delivered what many expected—a 25-basis point cut in the overnight borrowing rate, bringing it to a target range of 4.25–4.5 per cent. However, the Federal Reserve tempered expectations for 2025, signalling fewer rate cuts than initially projected.