Summary
The Federal Reserve is expected to lower interest rates to help with hiring and reduce borrowing costs. Fed Chair Jerome Powell will provide an update after the meeting. The U.S. economy faces challenges with a slow job market, ongoing inflation, and a government shutdown impacting economic data.
Key Facts
- The Federal Reserve plans to cut its key interest rate, possibly signaling another cut in December.
- This would be the second interest rate cut this year.
- Lower interest rates can reduce borrowing costs for mortgages and car loans.
- The U.S. economy is experiencing slow hiring and high inflation.
- The Federal Reserve is making decisions with limited data due to a government shutdown.
- Approximately 750,000 federal workers are affected by the shutdown, which might reduce consumer spending.
- The current interest rate is 4.1%, and a cut to 3.9% is expected.
- The economy heavily relies on investments in artificial intelligence infrastructure.
