David McNamara: US caution v Eurozone stability at the latest central bank meetings

The overarching message from the ECB remains that monetary policy is 'in a good place' in the Eurozone

Federal Reserve Board Chair Jerome Powell stated that a December rate cut was “not a forgone conclusion…far from it”. File photo: AP/Susan Walsh

The latest round of central bank meetings last week yielded a few surprises. Notably, the outlook for the US Federal Reserve is now more uncertain, as Chair Jerome Powell raised the bar for further near-term rate cuts. 

The Fed meeting saw the central bank cut interest rates by 25bps to 3.75-4.00%. The Fed has now cut by 50bps this year and reduced rates by 150bps since it started to ease policy in September 2024.