Fed Set to Cut Rates Amid Economic Uncertainty

The US Federal Reserve is expected to cut interest rates by a quarter percentage point on Wednesday, with policymakers battling with gaps in economic data caused by the recent government shutdown. The decision comes amid competing views on the risks facing the economy, with some Fed officials skeptical about further rate reductions due to elevated inflation, while others worry about a weakening economy and job market. The Fed's new economic projections will provide insight into its expected rate path, but analysts expect a hawkish turn, with a higher bar for future rate cuts. The policy statement may indicate a cut is less likely at subsequent meetings, and Fed Chair Jerome Powell may emphasize that further cuts depend on labor market deterioration.