What to expect from Wednesday's Fed meeting on rate cuts as layoffs at major companies continue

Group 1 - The Federal Reserve is expected to cut interest rates by a quarter point, influenced by recent job cuts from major companies like Amazon and UPS, despite a lack of official employment data due to a government shutdown [1][2] - Amazon announced a reduction of 14,000 jobs, while UPS has cut 48,000 positions this year, indicating a trend of workforce reductions among large corporations [1][2] - The job cuts are seen as a potential catalyst for further Fed rate cuts by the end of the year, with major indices reaching record highs [2][3] Group 2 - The unemployment rate is anticipated to rise in the coming quarters, which could be perceived as beneficial for the market as it may prompt the Fed to take action [3][4] - There is a concern that the current job losses and rising unemployment may eventually lead to negative economic implications, despite some believing that bad news could be good for the market [4][5] - The lack of recent data complicates the understanding of the economic landscape, as companies are providing insights into their operations amidst the job cuts [5][6] Group 3 - The layoffs at UPS are attributed to a reversal of pandemic-driven demand, suggesting that the company cannot sustain its previous workforce levels [8] - In contrast, Amazon's job cuts are viewed as a strategic move to maintain capital discipline and focus on high-potential investments, indicating a different narrative behind their workforce reduction [9][10] - The differing stories of Amazon and UPS highlight the complexities of the current job market, where job cuts may coexist with productivity gains [10]