The second rate cut would follow a half-point cut announced by Federal Reserve Chair Jerome Powell in September|@federalreserve|X
Federal Reserve officials are expected to lower interest rates by a quarter percentage point at a Thursday meeting, continuing their strategy to bring inflation closer to the 2% target.
Following a half-point cut announced by Fed Chair Jerome Powell in September, this week’s decision is less suspenseful, especially since it will come shortly after the presidential election.
However, the policy changes enacted by the next president could affect the economic outlook and influence the Fed’s future rate-cut decisions.
Officials aim to balance solid consumer spending with a cooling labor market, which added only 67,000 jobs monthly on average in recent months.
Despite recent volatility in economic data, the Fed remains committed to a cautious approach.