[The Federal Reserve May Cut Interest Rates by 25 Basis Points This Week, Voting Results Could Show Divergence]
The Federal Reserve is expected to lower the federal funds rate target range by 25 basis points to 3.75%–4.0% on Wednesday. Generali Investments predicts that there may be divergence in the voting among policymakers: one dissenter may support a 50 basis point rate cut, while some dissenters may favor keeping rates unchanged. The institution expects the Federal Reserve to cut rates again in December and conduct the final rate cut in the first quarter of 2026. Senior economist Paolo Zanghieri stated that Federal Reserve Chair Jerome Powell may describe this rate cut as a risk management measure but is unlikely to signal a policy inclination for December.