The Federal Reserve is expected to lower interest rates by 25 basis points next week and again in December, according to a Reuters poll of economists. Majority predict another cut in December, with financial traders pricing in two more reductions this year.

The Fed’s decision is influenced by concerns over inflation and weakening labor market. Majority of economists predict interest rate cut on October 29. Uncertainty rises as speculation on next Fed chair mounts after Powell’s term ends in May.

Economists are divided on where rates will be by the end of next year, ranging from 2.25%-2.50% to 3.75%-4.00%. Majority believe the bigger risk is that the Fed will cut rates too low, with President Trump pressuring for more aggressive cuts. Fed’s independence is at risk, according to experts.

Read more at Yahoo Finance: US Fed to trim rates twice more this year; 2026 rate path very unclear