The Federal Reserve likely will stick to the business at hand when it wraps up its meeting Thursday with another interest rate cut, but will have its eye on the future against a backdrop that suddenly has gotten a lot more complicated.
The focus, though, will turn to what's ahead for Chair Jerome Powell and his Fed colleagues as they navigate a shifting economy — and the political earthquake of Donald Trump's stunning victory in the presidential race.
So while the immediate action will be to stay the course and enact the cut, which equals 25 basis points, the market's attention likely will turn to what the committee and Powell have to say about the future.
The fed funds rate, which sets what banks charge each other for overnight lending but often influences consumer debt as well, is currently targeted in a range between 4.75%-5.0%.
Market pricing currently favors another quarter-point cut in December, followed by a January pause then multiple reductions through 2025.
Persons:
Jerome Powell, Donald Trump's, Powell, Krishna Guha, Guha
Organizations:
Federal Reserve, Evercore ISI