The Federal Reserve is widely expected to cut its key interest rate again in December, driven by signs of a softening U.S. job market. According to a recent poll, about 80% of economists anticipate a 25-basis-point cut at the December meeting.
In recent weeks, private-sector surveys have reported employer layoffs and sluggish hiring, raising concerns that the labor market is losing steam. At the same time, inflation measures are inching closer to the Fed’s target, which gives policymakers more room to ease.
Despite this consensus, Fed Chair Jerome Powell has cautioned that a rate cut in December is not guaranteed, citing conflicting views among committee members and delays in key economic data caused by the government shutdown.
Markets are already reacting: the dollar has slipped slightly and Treasury yields have edged lower in anticipation of looser monetary policy.
A December cut would mark a further shift from fighting inflation to bolstering employment and growth—and could change borrowing costs for consumers and businesses heading into next year.
