The Federal Reserve has kept the policy rate unchanged at 5.25-5.5%, as widely expected, but acknowledged growth "has slowed from its strong pace in the third quarter" plus a recognition that "inflation has eased over the past year".

Fed Chair Jay Powell went even further in the press conference, saying growth had slowed “substantially”. The accompanying statement also adds the word “any” to the sentence “in determining the extent of any additional policy firming that may be appropriate to return inflation to 2% over time”, offering the clearest hint yet that there is an acceptance on the committee that interest rates have peaked. It was a unanimous decision.

Powwell suggested there may be three rate cuts next year.