Summary
The Federal Reserve is expected to cut interest rates by a quarter point this week after a two-day meeting. This may be the last rate cut for some time, as officials are divided on future cuts and plan to signal that more adjustments might not happen soon.
Key Facts
- The Federal Reserve will likely cut its interest rate target by a quarter point this week.
- Officials from different viewpoints within the Federal Reserve have been vocal about whether to cut rates.
- Hawks, who want to keep rates steady, want more evidence of a weakening job market before further cuts.
- Doves, including three governors appointed by President Trump, support cutting rates to help the economy.
- Federal Reserve leaders, including Chair Jerome Powell, are trying to balance these views.
- San Francisco Fed President Mary Daly supports a December rate cut, even without a vote.
- Some officials, like Chicago Fed President Austan Goolsbee, are cautious about further rate cuts.
- The Federal Reserve aims to communicate that future rate cuts in 2026 are uncertain.
