rate cut
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Many Positive Takeaways from the Fed Meeting Amid Cautionary Warnings
The Federal Reserve cut rates by 0.25 percentage points in December, pairing a modest “hawkish” trim with a new $40 billion‑monthly Treasury bill purchase program that quietly eases liquidity. Officials forecast stronger 2026 growth and signal only two more cuts before 2027, prompting a market rally and expectations of a “Santa Claus” surge. Meanwhile, NATO’s 5 %‑GDP defense‑spending target is driving a $4.3 billion influx into European AI‑defense startups, creating investment opportunities as legacy contractors partner with agile AI firms.
