"A cut Wednesday would be the second this year and could benefit consumers by bringing down borrowing costs for mortgages and auto loans. Since Fed chair Jerome Powell strongly signaled in late August that rate cuts were likely this year, the average 30-year mortgage rate has fallen to about 6.2% from 6.6%, providing a boost to the otherwise-sluggish housing market.Still, the Fed is navigating an unusual period for the U.S. economy and its future moves are harder to anticipate than is typically the case."
"The central bank is assessing these trends without most of the government data it uses to gauge the economy's health. The release of September's jobs report has been postponed because of the government shutdown. The White House said last week October's inflation figure may not even be compiled.The shutdown itself may also crimp the economy in the coming months, depending on how long it lasts."
The Federal Reserve will almost certainly cut its key interest rate on Wednesday and could signal another cut in December to bolster hiring. A rate cut would be the second this year and could lower borrowing costs for mortgages and auto loans, with the 30-year mortgage rate falling to about 6.2% from 6.6% since late August. Hiring has nearly halted while inflation remains elevated and growth relies heavily on tech investment in AI infrastructure. Most government economic data are unavailable due to the shutdown, delaying jobs and inflation reports and risking weaker consumer spending as federal workers go unpaid. Fed officials view the current key rate as 4.1%.
Read at Fast Company
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