After the Federal Reserve cut interest rates, the target range was lowered to 3.5%-3.75%, and it may continue to respond flexibly in 2026

According to Jin Ten, investors are closely watching the upcoming release of the December meeting minutes by the Federal Reserve, which will detail the decision-making process behind the approval of a 25 basis point rate cut. The target range for the federal funds rate has been lowered to 3.5%-3.75%. This rate cut marks the third this year, and there is some controversy within the decision-making body. Ian Lingen, head of U.S. rate strategy at BMO Capital Markets Fixed Income Strategy Team, stated that the Federal Reserve is expected to maintain a flexible stance ahead of the interest rate meeting on January 29.