US Fed's 3rd Rate Cut: Powell's Tone on Future Easing Crucial Amid Data Gaps

• US Federal Reserve is expected to announce a third consecutive interest rate cut of 25 basis points.
• Market attention is focused on Chair Jerome Powell's signals regarding the future pace of easing, not just the immediate cut.
• Incomplete labor and inflation data, due to a government shutdown, complicates the Fed's economic assessment.
• Economists anticipate a "hawkish cut," where a rate reduction occurs, but Powell expresses caution about further cuts due to persistent inflation (2.8% vs. 2% target).
• Powell's press conference and potential signals on Quantitative Tightening (QT) will be crucial for market direction and future policy expectations.

Why It Matters: Fed's future easing signals, not the expected cut, will sway global markets.