US Fed cuts rates; Powell's 2026 policy signals crucial as inflation persists

• US Federal Reserve is expected to deliver its third consecutive interest rate cut today.
• The anticipated quarter-point reduction will likely set the federal funds rate at 3.5-3.75 percent.
• Investors will closely watch Chair Jerome Powell's signals regarding the future policy path and potential pause in easing.
• Incomplete labor-market and inflation data, along with inflation at 2.8% (above 2% goal), limit the Fed's ability to signal further cuts.
• The "dot plot" and balance-sheet strategy signals will be key for understanding the Fed's 2026 policy and liquidity conditions.

Why It Matters: Future economic stability hinges on the Fed's policy signals today.