Good morning. Here's what happened overnight and what you need to know today.
1.
Fed cut: The US Federal Reserve delivered its third consecutive rate cut this year, lowering its benchmark by a quarter-percentage-point to a range of 4.25%-4.50%. The decision reflects the central bank’s cautious approach amid stronger-than-expected economic resilience and stalled progress on inflation, which remains above the 2% target. Projections released alongside the cut show policymakers now expect 50 basis point worth of cuts in 2025, or two quarter-point reductions, down from the four previously forecast. The median PCE inflation forecast also rose to 2.5%, up from 2.1%. In a statement ahead of a news conference by Fed Chair Jerome Powell, the bank said it would keep a cautious approach to setting monetary policy. “In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook,” it said. The cut comes amid uncertainty brought by the potential economic impact of President-elect Donald Trump’s proposed policies including tariffs, tax cuts and a migration crackdown. (US Fed)(Bloomberg)
2.
Mission Kyiv: Australia will reopen its Kyiv embassy next month, nearly three years after closing it during Russia’s invasion. Foreign Minister Penny Wong announced the decision during her visit to Ukraine, the first by an Australian minister since July 2022. Ambassador Paul Lehmann and staff will return from Poland. Wong also pledged $66 million to the European Bank for Reconstruction and Development, $10 million to the Ukraine Energy Support Fund, and $80,000 to a charity aiding Ukrainian families. Reaffirming support for Ukraine’s sovereignty, Wong said the war had global implications, threatening Europe’s security and Indo-Pacific stability. The government had faced pressure from critics arguing the delay made Australia an international outlier. Opposition foreign affairs spokesperson Senator Simon Birmingham, during an August visit, had promised the coalition would reopen the embassy if elected. Wong said: “The Albanese Government has always said we would reopen our Embassy in Kyiv when it is safe to do so.” (Capital Brief)(Foreign Minister statement)(ABC)
