#FedRateCutExpectations
The Federal Reserve is expected to cut interest rates by 25 basis points at its meeting on October 28-29, amid concerns about the job market and inflation. Fed Governor Christopher Waller and Chair Jerome Powell have signaled support for a rate cut to steady the labor market and manage economic risks ¹.
*Key Points:*
- *Rate Cut Expectations*: The Fed is likely to cut rates to a range of 4.00%-4.25% ¹.
- *Economic Rationale*: The rate cut aims to address job market concerns and maintain economic stability.
- *Future Projections*: Fed officials project a median rate of 3.5%-3.75% by the end of 2025, implying two more 25-basis-point cuts this year ².
- *Divergent Views*: Some officials, like Stephen Miran, advocate for steeper rate cuts, while others, like Lorie Logan, prefer caution ³.
The Fed's decision will likely impact borrowing costs, stock markets and economic growth. A rate cut could stimulate economic activity, but also raise concerns about inflation ⁴.