Fed Interest Rate Decision: What to Expect This Week

By Valerie Njee
Fed Chair Jerome Powell will settle the debate over the central bank’s first cut since 2020 on Wednesday.

Policymakers at the Fed have laid the groundwork for interest rate cuts in recent weeks. Currently, the Fed’s target rate is sitting at 5.25% to 5.5%.

Bank of America’s survey noted that confidence in a soft landing and interest rate cuts from the Federal Reserve drove an increase in global investor sentiment for the first time since June.

This type of move from the Fed, said Morgan Stanley chief investment officer Mike Wilson, would be “purely an ‘insurance cut’ ahead of macro data that is assumed to stabilize.”

From CNBC.com

Key Takeaways:

  • The Federal Reserve’s highly anticipated two-day meeting, which gets underway Tuesday, is poised to take center stage.
  • Elsewhere, Brazil’s central bank is scheduled to hold its next policy meeting on Wednesday. The Bank of England, Norway’s Norges Bank and South Africa’s Reserve Bank will all follow on Thursday.
  • A busy week of central bank meetings will be rounded off when the Bank of Japan delivers its latest rate decision Friday.

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