Investors·2025-09-17 20:59Core Viewpoint - The Federal Reserve is expected to announce a quarter-point interest rate cut, with markets anticipating further cuts later this year, influenced by labor market conditions and inflation data [1][3][6]. FOMC Policy Statement and Projections - The Federal Open Market Committee (FOMC) is set to release a policy statement regarding changes to the federal funds rate and its balance sheet [2]. - Markets are pricing in a 73% likelihood of an additional 50 basis points in rate cuts this year, suggesting further cuts at upcoming meetings [3]. - Previous projections indicated a total of 50 basis points in rate cuts for the year, but recent job growth declines and rising unemployment may alter these expectations [4]. Labor Market and Inflation - Fed Chairman Jerome Powell indicated that the risks to the labor market have reached a level that justifies rate cuts, with labor market weakness now seen as a significant risk alongside inflation [6]. - The August jobless report and inflation data may influence the Fed's stance on signaling multiple future rate cuts [7]. Political Influence on Fed Policy - President Trump's efforts to influence the Fed's direction are highlighted, particularly with the involvement of his economic adviser Stephen Miran in the upcoming Fed meeting [9]. - The potential removal of Fed Governor Lisa Cook could shift the balance of influence over future Fed appointments and decisions [11][12].