This week’s decision lacks the suspense of the last one, when markets weren’t sure how big the Fed’s rate cut would be. The Fed cut rates by a half-point at its meeting in September, the first cut in four years. Investors will be on alert Thursday for any signals about where the bar is to cut rates again in December. When the Fed cut rates in September, the unemployment rate had ticked up to 4.3% in July from 3.7% at the beginning of the year. “It feels to me that the neutral rate is probably significantly higher than it was back then."

Source: Wall Street Journal November 06, 2024 11:24 UTC