The Federal Reserve is anticipated to lower rates by 25 basis points, with Chair Powell likely to balance easing with caution amid data gaps and internal policy divisions.
The Federal Reserve will announce its interest rate decision and economic outlook Thursday at 3:00 a.m., with markets widely expecting a 25 basis point cut to the 3.50%-3.75% range. The move comes amid missing economic data due to a government shutdown and reported divisions within the Federal Open Market Committee (FOMC). Chair Jerome Powell is likely to adopt a cautious 'hawkish cut' stance—signaling easing while maintaining inflation vigilance.