Part 3/11:
Chair Jerome Powell described the cut as a "hawkish" move, warning that future rate cuts might be more difficult to justify while emphasizing that the Fed remains "well positioned to wait." Yet, markets are skeptical, pricing in roughly a 68% chance of multiple rate cuts next year. Interest rate expectations are also influenced by uncertainty about Powell’s successor, with Kevin Hasset—a known dove advocating for aggressive rate reductions—emerging as the frontrunner to replace Powell in May 2026.