Markets
Fed signals December cut as inflation cools
By Dana Whitfield · October 26, 2026
WASHINGTON — Federal Reserve officials pointed on Thursday to a quarter-point cut in December after a second month of softer prices. Powell said the committee is ready to move if inflation keeps cooling. Officials pencilled in two more cuts next year in their latest projections.
Core prices rose 0.2% in September, below forecasts, and Treasury yields slipped to 4.08%, the lowest since August. Officials described the labor market as cooling but still solid, with payrolls up 142,000 last month. Oil eased as tanker traffic through the Strait of Hormuz picked up.
Futures moved within minutes of the remarks, and the dollar slipped against most major currencies in afternoon trading. The committee meets again on December 9 and 10.