US Fed Meeting LIVE Updates: All eyes on Jerome Powell as FOMC set to announce its rate cut decision tonight

US Fed Meeting LIVE Updates:

The US Federal Reserve concludes its two-day monetary policy meeting today (October 29), with markets widely expecting a 25 basis point interest rate cut, which would bring the policy rate to the 3.75%–4.00% range. The S&P 500 has rallied over 5% in the last two-and-a-half weeks, buoyed by expectations of a rate cut that would inject more liquidity into the system. However, the decision comes amid a stark policy divide within the Fed.

Core inflation has remained at 3% for three straight months, around 100 basis points above the Fed’s 2% target, limiting the scope for dovish members to ease further. Yet, rising unemployment claims and labour market weakness have strengthened calls for additional rate cuts to support the slowing economy. The ongoing government shutdown since October 1 has delayed key economic data releases, including official unemployment figures, complicating the Fed’s assessment of the economy. The last reported unemployment rate stood at 4.3% in August.

Despite the inflation challenge, markets have already priced in a rate cut, following softer-than-expected price data. Analysts expect further cuts in December and January, with the Trump administration maintaining heavy political pressure on Fed Chair Jerome Powell to keep borrowing costs low.

A CNBC survey of 38 economists, strategists, and fund managers revealed that 80% believe AI-linked stocks are “somewhat” to “very overvalued”, while most participants foresee at least two more rate cuts in the coming months.  Fed Vice Chair Michelle Bowman had earlier suggested that the Fed’s reference to “additional adjustments” in its last policy statement could signal more easing ahead. Still, with inflation well above target and doubts about data visibility, today’s decision remains pivotal for the trajectory of US monetary policy.