The Fed meeting on Wednesday will address a potential rate cut, with markets speculating on whether the reduction will be a quarter or half point amid economic uncertainties.
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The Fed meeting will be held on Wednesday (9/18) where Jerome Powell will discuss a potential rate cut. The markets have been extremely volatile leading into this fed meeting as well as the presidential election. Will the Federal government cut the rates by a quarter (expected) or a half point (unexpected)?
The entire concept of doing rate cuts is to cut down consumer and business borrowing costs, which helps increase the economy from hitting a recession. Price increases have steadily slowed down, however a weakened labor market has emerged which has become a bigger worry for many economists. Unemployment rates have surged from 3.7% to 4.2% in less than 7 months, however this is mainly due to the surge of immigrants into the workforce rather than layoffs, stated by Goldman Sachs to their clients.
The question on everyone's mind; Will the Fed act boldly or cautiously when deciding and announcing the rate cut this Wednesday?
