The Federal Reserve is poised to cut interest rates by 25 basis points, bringing the federal funds rate to 3.75%-4.00%, amid signs of a cooling labor market and manageable inflation. This move aims to sustain economic momentum and shield the labor market from further slowdown.

*Key Highlights:*

- *Rate Cut Expectation*: 94.6% probability of a 25 basis-point cut, according to CME's FedWatch Tool

- *Economic Indicators*: Unemployment rate at 4.3%, inflation at 3% year-over-year as of September

- *Future Policy*: Fed officials may discuss halting balance sheet reduction and potential further rate cuts

- *Market Impact*: Interest rate cuts can lower borrowing costs, boost corporate profits, and lead to higher stock prices

The decision is expected to have significant implications for the economy, and investors are closely watching for signals on future policy direction ¹.

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