US Fed Poised for Third Rate Cut

The US Federal Reserve (Fed) is broadly expected to implement its third consecutive interest rate cut this week, reducing the rate by 25 basis points to a target range of 3.50 per cent to 3.75 per cent.

This move is intended to support the economy as the job market shows signs of softening.

However, the decision is expected to expose deep divisions among policymakers.

While some officials favour the cut due to labour market risks, others are hesitant because of persistent inflation, which is partly being driven by US tariffs.

Fed (News Central TV) — The US Fed is poised for a third rate cut. Credit: Ahram Online

Analysts predict the final vote will be accompanied by dissents from members arguing for both a larger cut and no cut at all.

Compounding the challenge, a recent government shutdown has deprived the Fed of crucial labour market data for October and November, making economic forecasting more difficult than usual.

Economists note the most critical outcome of the meeting will be whether Fed Chair Jerome Powell signals a pause in further rate reductions or keeps the possibility of additional cuts open for January.

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Abisoye Adeyiga

Abisoye Adedoyin Adeyiga holds a PhD in Languages and Media Studies and a Master’s in Education (English Language). Trained in digital marketing and investigative journalism, she is passionate about new media’s transformative power. She enjoys reading, traveling, and meaningful conversations.