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Fed moves toward a rate cut amid limited data and rising uncertainty
The Fed is poised to cut rates despite missing key employment data, reflecting a balance between inflation risks and softening labour-market signals.
The Federal Reserve is expected to cut its benchmark rate by a quarter-point to the 3.75-4.00% range in its October 28-29 meeting, despite facing a data gap caused by the U.S. government shutdown. Policymakers lack the full September employment report and are navigating a mix of lingering hiring softness and moderating inflation. Some officials are concerned that loosening too quickly could risk a rebound in inflation, while others argue for greater support amid early signs of labour-market cooling and uncertain economic momentum.