Here's When the Federal Reserve Is Expected to Cut Interest Rates Again, and What It Means for the Stock Market

Core Points - The U.S. Federal Reserve cut the federal funds rate for the first time in 2025 due to concerns over labor market weakness, indicating potential economic slowdown [1] - There is a consensus among the Fed and Wall Street that another interest rate cut may occur at the upcoming meeting on October 28-29 [1] Economic Indicators - The Fed's dual mandate includes maintaining price stability with a target inflation rate of around 2% and supporting a healthy jobs market without a specific unemployment target [3] - As of August, the Consumer Price Index (CPI) is increasing at an annualized rate of 2.9%, down from a 40-year high of 8% in 2022, which led to a significant increase in the federal funds rate from 0.1% to 5.3% between 2022 and 2023 [4] - Job creation has been weak, with only 73,000 new jobs added in July, below the expected 110,000, and a downward revision of 258,000 jobs for May and June, indicating a weaker economy [5] - In August, only 22,000 jobs were created, and the unemployment rate reached a four-year high of 4.3% [6] Future Projections - Economists expect 50,000 new jobs in the upcoming September jobs report, which could influence the likelihood of an interest rate cut in October [6] - The Fed's quarterly Summary of Economic Projections indicates expectations for interest rates, economic growth, inflation, and unemployment over the next couple of years [7]