Overview

• The Federal Reserve is widely expected to announce its first rate cut since 2020, with a quarter-point reduction seen as the most likely outcome.
• Speculation remains about a potential half-point cut, which some traders believe could better support the economy.
• Interest rate decisions are also anticipated this week from the central banks of Brazil, the UK, Norway, South Africa, and Japan.
• The Fed's decision aims to make borrowing more affordable and support a 'soft landing' for the economy, avoiding a steep recession.
• Businesses and consumers are hopeful that lower rates will boost investment and spending, particularly in the housing market.