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Fed Whisperer: If Republicans Control Congress, Fed Will Alter Some Assumptions at Next Mth's Meeting
While it is widely expected that the Fed will cut rates by a quarter point this week, the bigger question is how many more cuts are needed, and investors will be watching for any h...
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Fed Whisperer: If Republicans Control Congress, Fed Will Alter Some Assumptions at Next Mth's Meeting
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While it is widely expected that the Fed will cut rates by a quarter point this week, the bigger question is how many more cuts are needed, and investors will be watching for any hints from the Fed about further rate cuts next month, Nick Timiraos, “the Fed whisperer”, a journalist from The Wall Street Journal, wrote in his article.

Fed officials will not change their policy stance until they see the details of Donald Trump's tax, tariff, and immigration policies, said Timiraos. However, if Republicans control both houses of Congress, Fed economists will alter some assumptions at next month's meeting.

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Timiraos also quoted former Fed Vice Chairman Richard Clarida as saying that the chance of a rate cut next month seems higher, but the possibility of cuts next year is particularly broad. The article pointed out that the Fed has several other issues to consider regarding interest rates, including the job market, inflation, and the neutral rate level.

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