The Federal Reserve is anticipated to announce its first interest rate cut of the year, lowering the benchmark federal funds rate by 25 basis points to 4% to 4.25%. Markets have priced in a 96% chance of the cut, with policymakers considering adjusting monetary policy due to weakening job creation and rising inflation. The Fed’s preferred inflation gauge, the PCE index, has trended away from the 2% target, while the consumer price index rose to 2.9% in August. This decision comes amid pressure from the Trump administration to stimulate the economy. Two FOMC members dissented from the Fed’s July decision to hold rates steady, marking the first such dissent since 1993.

Read more at Yahoo Finance: Fed expected to cut rates for first time in 2025 amid Trump pressure