The Federal Reserve announced a 25-basis-point interest rate cut in a sharply divided vote, with multiple policymakers dissenting and others signaling resistance to further easing. Officials' projections now show a likely pause in future cuts amid persistent inflation and lack of clear economic data, underscoring a split between those focused on labor market weakness and others wary of easing too far. The discord highlights uncertainty about the policy path ahead as the central bank balances its dual mandate and navigates an upcoming leadership transition.

The dollar logged its sharpest drop since September after the Federal Reserve cut rates by 25 basis points and Chair Jerome Powell emphasized labor-market risks over inflation pressures. The Bloomberg Dollar Spot Index fell 0.4% as investors interpreted Powell's tone as more dovish than expected, with the greenback weakening against all major developed-market currencies. Strategists said upcoming US jobs and inflation data will be more pivotal for the dollar's trajectory than Wednesday's policy decision.

Options positioning shows traders are overwhelmingly betting the AI rally will extend into early 2026, with call-option open interest on the Magnificent Seven near its highest since early 2023 relative to puts. Falling implied volatility and expectations of Federal Reserve easing have reduced demand for hedges, leading strategists to describe year-end tech protection as "a waste of money." Despite valuation concerns, derivatives flows show investors are still paying for upside exposure, though a minority of managers warn of a potential correction early next year.

Treasury yields declined after the Federal Reserve lowered interest rates by 25 basis points for the third consecutive meeting and indicated the potential for further policy easing in 2026. The two-year note saw the most significant drop, falling 8 basis points to 3.54%. Federal Reserve Chair Jerome Powell's comments on a potentially weaker labor market contributed to the rally in Treasurys.

The Federal Reserve will start purchasing $40 billion in Treasury bills monthly starting Friday to ease short-term funding costs and rebuild reserves, responding to rising short-term rates and funding market pressures. This move comes earlier and is larger than expected, with the Fed noting that reserve balances have declined to ample levels. The New York Fed expects elevated reserve management purchases for a few months before reducing the pace.

Apple has expanded its presence at Vornado Realty Trust's Penn 11 in New York City with a lease for 95,000 square feet across two floors, bringing its footprint in the building to 550,000 square feet. The lease is set to expire in 2035.

The revival of Babbo in Greenwich Village under Stephen Starr and chef Mark Ladner is steeped in nostalgia, aiming to recapture the magic that once made it a New York dining icon. The restaurant retains much of its original ambiance, and the menu features signature dishes from its heyday. While there are flashes of culinary brilliance reminiscent of Babbo's past, several dishes fall short of their storied reputation, leaving the revival a mix of fond memory and uneven execution, writes Helen Rosner.

Setting boundaries at work to prevent others from overloading you with tasks involves developing professional assertiveness, which entails respectfully voicing your needs, defending your boundaries and requesting what you deserve, all while maintaining positive relationships with colleagues, writes Steve Keating. "The best part? You won't become 'difficult.' You'll become the colleague everyone wishes they had more of: clear, reliable and unafraid to speak the truth kindly," Keating notes.