Federal Reserve Faces Uncertainty Before December Meeting

Uncertainty hangs over the Federal Reserve as they prepare for their next policy decision, with minutes from the October meeting to be released Thursday morning UTC+8. Investors are grappling with how US interest rates will move forward after the Fed’s last rate adjustment lowered them to a range of 3.75%-4%. While market expectations had centered around a December rate cut, recent comments from Chairman Jerome Powell and Boston Federal Reserve President Susan Collins have dashed those hopes. With the possibility of a December rate cut seemingly off the table, uncertainty regarding US economic direction lingers. The impact of the recent government shutdown has further hampered this decision-making process. With key labor market and inflation data delayed due to the 43-day shutdown, investors are left grappling with an information gap as the Fed prepares for the December meeting.