Fed Meeting: Don't Bet On Hawkish Turn After Rate Cut

The Federal Reserve will undoubtedly cut its key interest rate for a third-straight meeting tomorrow and signal a pause to assess labor market and inflation data delayed by the government shutdown. Markets are pricing in 89% odds of a quarter-point rate cut on Wednesday, which would lower the target range for the federal funds rate to 3.5% to 3.75%. Market pricing shifted dramatically toward a rate cut on Nov. 21, after New York Fed President John Williams, a centrist, said he saw room for a further easing "in the near term."