Fed Divided on Rate Cut Amid Data Fog; Final 2025 Meeting Today

• The US Federal Reserve holds its final 2025 policymaking meeting, with markets largely anticipating a 25-basis-point rate cut.
• Deep divisions exist among Fed policymakers regarding the rate decision, balancing inflation concerns against a cooling labor market.
• A "data fog" from a US government shutdown has delayed key economic data, complicating the Fed's calculus.
• Chair Jerome Powell's post-decision remarks and forward guidance will be crucial, potentially signaling the future path of monetary policy.
• A rate cut would lower borrowing costs and impact global financial conditions, but carries the risk of reigniting inflation.

Why It Matters: Fed's rate decision impacts global borrowing costs and future economic policy.