Fed set to cut interest rates
Markets almost certain: the Fed likely to lower interest rates on October 29
The U.S. Federal Reserve (Fed) is facing one of its most important decisions of the year. On October 29, it will announce new interest rate policies — and financial markets almost unanimously expect a rate cut.
According to data from the Polymarket platform, investors see a 98% probability that the Fed will lower rates by 25 basis points. The chances of a larger cut, no change, or even a hike are collectively estimated at just 2%.
The strong expectations for a cut are driven mainly by weak labor market data. Recent reports show that private-sector employment is growing more slowly than expected, signaling an economic slowdown. For many economists, this is a clear indication that the central bank should act again to support the economy.
In September, the Fed resumed its rate-cutting cycle after a period of stability. Analysts at Bank of America Securities predict that during the upcoming meeting, the Fed might not only lower rates by 25 basis points but also announce the end of its balance sheet reduction program.
This decision carries major implications not only for financial markets but also for ordinary Americans — it affects loan and deposit rates, as well as the overall pace of economic growth in the United States.
