The U.S. Federal Reserve has announced its third consecutive interest rate cut, reducing the benchmark rate by 25 basis points to a near three-year low of approximately 3.6%, aiming to stimulate economic growth amid persistent inflation and slowing job figures.
Chair Jerome Powell indicated a cautious outlook, suggesting that while this cut is intended to bolster the economy, future reductions may be limited as the Fed monitors evolving economic conditions.
Mixed reactions unfolded across financial markets, with initial optimism cooling as concerns over technology sector performance, particularly linked to Oracle's disappointing earnings related to artificial intelligence, weighed heavily on investor sentiment.
Many stock indexes reflected volatility, as the FTSE 100 and Gulf markets saw gains while major U.S. indices experienced uncertainty amid fluctuating corporate results and economic indicators.
The dollar weakened and U.S. Treasury yields dropped in response to the Fed's actions, signaling a more cautious approach among investors regarding future economic prospects.
The Fed's decision reverberated globally, prompting central banks in the Gulf region to follow suit with their own rate cuts, illustrating the interconnected nature of international monetary policy and the broader economic landscape.

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