1 Hour Left to FED’s Critical Interest Rate Decision! Here’s What to Expect According to the Latest Data

The Fed will likely cut interest rates for the second time today in response to inflationary pressures that are weighing on the American people.

According to the latest data from cryptocurrency prediction platform Polymarket, investors expect the FED to cut 25 basis points with a 99% probability.

But the recent presidential election has introduced a new layer of uncertainty into the Fed’s future path, especially given President-elect Donald Trump’s economic agenda, which some analysts warn could trigger inflation.

Trump’s proposals, such as import taxes and a mass deportation plan, are expected to put upward pressure on inflation and complicate the FED’s approach to interest rates. During Trump’s previous term, the independence of the FED was publicly criticized, and former President Jerome Powell faced pressure from Trump to raise interest rates in order to control inflation. With Trump’s reinstatement, concerns have begun to surface about renewed political interference in the central bank’s traditionally independent policy-making process.

The Fed’s decision comes at a time when the economy is sending mixed signals: growth remains steady while hiring shows signs of slowing. However, strong consumer spending, driven largely by higher-income households, is raising concerns that further rate cuts could lead to economic overstimulation and a re-acceleration of inflation. Adding to the confusion, financial markets have seen Treasury yields rise sharply since the Fed’s last rate cut in September, effectively increasing borrowing costs across the economy and reducing the impact of the Fed’s rate cuts on consumer spending.

*This is not investment advice.