Fed meeting today: What to expect?

The Federal Reserve is set to announce its interest rate decision today and will likely end its meeting with another cut in lending rates.

Chair Jerome Powell announced a 0.5% rate reduction in September, marking the first rate cut since 2020.

Analysts expect a 0.25% cut this week, bringing the benchmark interest rate down from the current range of 4.75%–5.0%. They see the Fed adapting to an economy with lower inflation and a cooling job market.

US inflation has reduced to 2.1%, inching closer to the Fed’s goal of 2%.

Markets suspect another 0.25% rate cut in December, followed by a pause in January and additional cuts through 2025.

While interest rate reductions are anticipated, the real focus will be on what comes next as Chair Powell and the Fed prepare for potential economic shifts as JPow and team await what to expect from President-elect Donald Trump.

Economists worry that new Trump-era policies, like tax cuts and tariffs, could reignite inflation.

Powell will likely avoid any strong statements about politics, focusing instead on the stability of the American economy.