The Fed is Expected to Cut Interest Rates

The decision comes in the context of a slowing labor market, with payroll growth remaining below 100,000 for four consecutive months. Meanwhile, disinflation has stalled, and inflation accelerated to 2.9% in August, with the full impact of tariffs yet to be felt. Expectations for a more significant cut of 50 basis points remain limited, despite President Trump publicly urging the Fed to implement a "substantial cut." The Fed will also release updated economic projections and a new dot plot, with markets anticipating at least two additional quarter-point cuts before the end of the year. This meeting occurs as a U.S. appeals court rejected President Trump's attempt to remove Lisa Cook from the Fed's Board of Governors, while Stephen Miran was confirmed by the Senate on Monday night to join the Board.