- Markets are assigning a nearly 100% probability that the Federal Open Market Committee will approve a second consecutive quarter percentage point at its meeting this week.
- Beyond that, policymakers are likely to debate the future path of reductions, the challenges posed by a lack of economic data and the timetable for ending the Fed’s balance sheet runoff.
- “There’s dissent between people who want to cut now, and people who want to wait and see a bit more,” said former Fed official Bill English.
The easy part for the Federal Reserve on Wednesday will be announcing an interest rate cut when it wraps up its two-day policy meeting. The hard part will be taking care of other details that are presenting substantial challenges to policymaking these days.
Markets are assigning a nearly 100% probability that the Federal Open Market Committee will approve a second consecutive quarter percentage point, or 25 basis point, reduction in the federal funds rate. The overnight lending benchmark is currently targeted between 4%-4.25%.
Source: https://www.cnbc.com/2025/10/28/fed-rate-cut-preview.html