A divided US Federal Reserve cut interest rates by 25 basis points for a third consecutive meeting on Wednesday, while signalling it could pause future moves following just one rate cut in 2026.
Central banks across the GCC were expected to follow the Fed's decision – which lowered the target range for the federal funds rate to 3.5 to 3.75 per cent – because of their currency pegs, with Kuwait being the only exception.
Describing the move as a “close call”, Fed Chairman Jerome Powell suggested the central bank is now in a position to return to a wait-and-see posture.
“We're well positioned to wait and see how the economy evolves from here,” he said during a news conference.
The Fed also maintained its future rate-cut forecast, according to its quarterly economic projections, expecting its target rate to fall to 3.4 per cent by the end of 2026, in line with its September forecast.
“This cut was
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