The two-day meeting of the Federal Reserve is already underway, with the outcome scheduled to be announced on Wednesday at 2 p.m. ET.
The Federal Reserve’s crucial interest rate decision is scheduled to be announced on Wednesday at 2 p.m. ET. The Federal Open Market Committee’s (FOMC) meeting kicked off on Tuesday to review the latest economic data, and it will conclude on Wednesday.
Markets widely expect the central bank to cut the benchmark rate by 25 basis points – the CME FedWatch tool points to a 94% probability of a rate cut.
Boosting the hopes of a rate cut during the September meeting is a weak labor market and soft inflation – the consumer price index (CPI) rose 2.9% annually in August, in line with Wall Street expectations. Weekly jobless claims rose to their highest levels in almost four years, surpassing estimates.
Retail users on Stocktwits widely expect the Fed to announce a rate cut on Wednesday, with 83% of respondents in an ongoing poll indicating that a 25-basis-point (bps) or 50-bps rate cut is possible. However, 13% of the respondents say there could be no rate cut, while 4% expect a 25 bps hike.
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