Interest Rates Impacting the U.S. Economy: Live Updates from the Fed Meeting

Interest Rates and the U.S. Economy: Key Highlights

In the hours leading to the Federal Reserve's critical rate decision, investors remain split on how much policymakers will alter interest rates. CME FedWatch indicates a 61% chance for a 50 basis point cut and a 39% chance of just a 25 basis point cut.

Market Reactions

Currently, the Fed's target rate range is 5.25% to 5.5%. One basis point corresponds to one one-hundredth of a percent. Aditya Bhave, senior U.S. economist at Bank of America, notes that a 50 basis point cut could signal troubling economic signs, urging investors to consider what they wish for.