Fed Cuts, Signals Pause, Starts T-Bill Buying

The Fed trimmed rates by 25 bps, flagged a likely pause, and announced T-bill purchases to steady liquidity. Banks guided stronger trading, while Europe readies budget talks.

TL;DR:

• 🏦 Fed cuts 25 bps, signals pause
• 💵 Fed to buy $40B T-bills
• 📈 BofA sees Q4 markets revenue up
• 🇪🇺 Eurogroup budget talks today

Fed Cuts 25 bps, Signals Pause

The Federal Reserve lowered the target range to 3.50–3.75% in a 9–3 vote, with two dissenters preferring no move and one favoring a 50 bp cut. After three straight cuts, policymakers indicated a likely pause as inflation proves sticky and data visibility remains limited. Traders shifted focus from the headline cut to the path ahead, keeping risk appetite measured into year-end. Source Source

Fed To Buy $40B T-Bills

Starting December 12, the Fed will purchase roughly $40 billion in short-dated Treasury bills to manage reserves and smooth money markets. The move supports front-end liquidity and should help stabilize funding rates as balance sheet runoff continues. Watch bills, repo, and SOFR for the first read-through on impact. Source

BofA Guides Q4 Markets Revenue Higher

Bank of America expects high-single-digit to ~10% growth in Q4 markets revenue, signaling solid client activity in FICC and equities. Stronger trading flows support bank earnings momentum and broader liquidity conditions. Financials with trading engines should benefit if volatility stays orderly. Source

Eurogroup Budget Talks Today

Finance ministers meet to review macro conditions and draft budget plans across the euro area. Outcomes guide fiscal stance, bond supply, and any flexibility under EU rules—key for spreads and the euro. Traders will watch periphery-core dynamics and guidance on 2026 frameworks. Source