Fed’s October Cut Offers Relief but Signals Tightrope Ahead for Investors

This report by Janus Henderson Investors, led by Daniel Siluk, Head of Global Short Duration and Liquidity, analyzes the U.S. Federal Reserve’s October 2025 decision and its implications for bond markets.

• Policy shift: The Fed cut rates by 25bps to a 4.00% upper bound and ended quantitative tightening, yet Powell’s comments suggested caution on future cuts.

• Economic outlook: Inflation remains elevated but stable; a softening labor market heightens uncertainty.

• Investment view: Diversified fixed-income exposure and quality credit selection remain key amid mixed global growth trajectories.

Explore the full report for in-depth analysis of the Fed’s policy balance and its impact on duration and credit positioning.