Analyst: The Fed's statement is dovish, expected to cut rates by 100 basis points next year

Jinse Finance reported that analyst Anna Wong stated: "My assessment is that the overall tone of the policy statement and the updated forecasts is dovish—although there are also some potentially hawkish messages. On the dovish side, the committee significantly raised the growth trajectory, lowered the inflation outlook, and kept the 'dot plot' unchanged. The Federal Open Market Committee also announced the start of reserve management purchases. On the other hand, a signal in the policy statement indicates that the committee tends to pause rate cuts for a longer period." She continued: "Although the 'dot plot' shows only one rate cut in 2026—while the market expects two—our view is that the Federal Reserve will ultimately cut rates by 100 basis points next year. This is because we expect weak employment growth, and currently see no clear signs of inflation reigniting in the first half of 2026."