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Federal Reserve Expected to Begin Interest Rate Cuts This Week

Markets anticipate a quarter to half-point reduction as central banks globally prepare for major rate decisions.

  • 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.
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