#fed

According to BlockBeats, the Federal Reserve is set to announce its final interest rate decision of the year at 3 a.m. UTC+8. This decision comes amid a "data vacuum" and internal disagreements. While a rate cut is expected, the Fed may offer vague guidance on next year's rate path, potentially leaning towards a hawkish stance.

Investors currently anticipate two additional 25 basis point rate cuts by the end of 2026, maintaining the benchmark rate between 3.00% and 3.25%. Michael Feroli, Chief U.S. Economist at JPMorgan, noted that hawkish views among regional Fed presidents could align the 2026 rate outlook with that of September, despite the low support for this week's expected rate cut and the increased threshold for further cuts.

Feroli indicated that the new rate forecast might "reflect unease about rate cuts," with potential adjustments in the policy statement suggesting a reduced likelihood of cuts in subsequent meetings. Federal Reserve Chair Jerome Powell is expected to emphasize in the post-meeting press conference that further rate cuts would only occur if there is a significant deterioration in the employment market.