FOMC Meeting Update: Fed Expected to Cut Rates Again as Powell Faces Political Pressure
The Federal Open Market Committee (FOMC) began its two-day meeting today. While Chair Jerome Powell will not speak today, the meeting will conclude tomorrow, Wednesday, October 29, with a policy announcement at 2:00 p.m. ET followed by Powell’s press conference at 2:30 p.m. ET.
Expected Decision:
The Fed is widely expected to cut its key interest rate, marking the second rate cut this year. This move follows signs of a weakening labor market, and analysts anticipate the possibility of another rate cut in December.
Additionally, Powell is expected to signal that the central bank may soon end its balance sheet reduction program, a sign of further monetary easing.
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Comments from Donald Trump
During a dinner with business leaders in Tokyo, President Donald Trump criticized Powell, calling him “incompetent” and reiterating his wish to replace him before his term expires in May 2026.
Reports indicate Trump has considered Treasury Secretary Scott Bessent as a potential replacement, though Bessent has shown no interest in the position.
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Investment Analysis
Market analysts suggest that the anticipated rate cut could benefit sectors that gain from lower borrowing costs, particularly:
Real Estate Investment Trusts (REITs)
Growth and tech stocks sensitive to financing rates
Despite short-term volatility, the overall outlook is positive for equities, as investors generally interpret falling interest rates as a buying signal for stocks.
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Summary Insight:
The Fed’s expected policy shift signals continued support for the economy. Markets are watching closely for Powell’s tone — whether he emphasizes confidence or caution — which could influence short-term trading sentiment