Fed uncertain on year-end rate cuts
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Interest rates should continue their downward journey, as forecasters expect another rate cut from the Fed on Oct. 29. Are more cuts coming?
Last month, the Federal Open Market Committee (FOMC), a policymaking body at the Fed, projected two additional quarter-point rate cuts over the remainder of the year. By contrast, Trump has called for rate cuts totaling as much as 3 percentage points. Trump has carried out a pressure campaign at the Fed with little precedent.
A policy divide within the central bank and a lack of federal government data may put another interest rate cut out of reach this year, Fed Chair Powell said.
Concerns about a weakening labor market may outweigh worries about rising inflation, tipping the Fed toward another rate cut, economists say.
Stocks and bonds initially rallied after the central bank cut interest rates on Sept. 17, but began giving up those gains before Federal Reserve Chair Jerome Powell started his post-meeting press conference.
Follow MarketWatch's live coverage of Wednesday's Federal Reserve decisions, after the central bank cut interest rates by 25 basis points and said it's ending its program of "quantitative tightening" on Dec.