The Federal Reserve will announce its latest interest rate decision at 2 p.m. ET, with investors widely expecting a quarter-point (25 basis point) cut, lowering the benchmark range from 4.25% to 4.50%. Markets will also be closely watching the Fed’s “dot plot” projections for clues on how far rates could fall this year.
At 2:30 p.m. ET, Fed Chair Jerome Powell will hold a press conference to explain the decision and outlook.
This meeting is shaping up to be highly contentious. In July, governors Christopher Waller and Michelle Bowman dissented, opposing the decision to hold rates steady. It was the first time since 1993 that multiple Fed governors broke from the majority.
The dynamic could intensify this time with the arrival of Stephen Miran, a newly appointed Fed governor by President Donald Trump. Miran, voting for the first time, has been a sharp Fed critic and is widely expected to push for a larger rate cut.
While most policymakers are seen backing a 25 bps cut, Waller and Bowman could dissent again. If Miran joins them, the division inside the central bank would deepen further. Adding to the uncertainty, Kansas City Fed President Jeffrey Schmid and St. Louis Fed President Alberto Musalem are rumored to prefer keeping rates steady, potentially amplifying opposition.
The critical questions for investors: How far will rates fall this year, and how unified is the central bank in its approach? The answers could set the tone for both U.S. markets and global financial conditions heading into year-end.
