Fed cuts though messaging is mixed

• The Federal Reserve cut the Fed Funds rate by 25bps to take it to 3.75% on the upper bound at its last FOMC meeting of the year
• While the cut was generally expected by markets, the scale of dissent of votes shows a Fed that is facing considerable internal arguments
• We expect three more 25bps cuts from the Fed in 2026, though the Fed may take more extended pauses between cuts
• Central banks in the GCC have followed the Federal Reserve and cut rates
• Lower rates will be an additional tailwind in 2026 to already robust performance in the non-oil economies

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