Fed rate decision at 2 p.m. ET today: Here's what investors should expect

Federal Reserve Interest Rate Decision - The Federal Reserve is expected to announce a decision on interest rates at 2 PM Eastern time, with differing expectations from economists [1][2] - Veronica Clark anticipates five consecutive 25 basis point cuts starting today, citing a gradual weakening in the labor market [3][4] - Mark Vitner suggests that the Fed should consider cutting rates in only two of the next three meetings, emphasizing the need for a balanced approach [5][6] Labor Market Insights - Clark expresses concern over the labor market risks, indicating a potential for layoffs and a need for the Fed to act [3][4] - Vitner acknowledges the weakening labor market but believes that aggressive cuts could lead to higher long-term rates, which would not benefit the housing market [6][18] - There is a discussion about the impact of tariffs on consumer spending and the overall economy, with a focus on the shift in spending from services to goods [9][10] Housing Market Dynamics - The housing market is described as "dead in the water," with a need for mortgage rates to drop below 6% to stimulate activity [6][19] - There is a significant inventory of new homes, the highest since 2007, which needs to be addressed for the market to recover [19][20] - Builders are currently hesitant to lower prices despite the inventory issues, indicating a challenging environment for the housing sector [19][20] Economic Outlook - The economists discuss the potential for a rebound in consumer spending, suggesting that recent uncertainties may have been temporary [12][14] - Concerns are raised about the long-term implications of the Fed's decisions on inflation and the overall economic landscape [8][18] - The conversation highlights the importance of effective communication from the Fed to manage market expectations and avoid negative reactions [18][21]