FOMC is expected to cut rates Today

WASHINGTON—The Federal Open Market Committee is expected to cut rates at the conclusion of its two-day policy-setting meeting, which ends today.

Along with numerous other analysts, NAFCU Chief Economist and Vice President of Research Curt Long said he anticipates another rate cut due to comments made by committee members at their annual retreat last month and in the last meeting minutes.

At the end of its July meeting, the FOMC cut rates by 25 basis points. Since then, there have been conflicting economic data: the labor market remains strong, inflation has firmed, consumer spending hasn't fallen significantly, and the economy is expanding at a modest pace; however, trade and tariff uncertainties and global economic weaknesses have created headwinds and unease, stated Long.

Long predicted another 25-point rate cut due to these concerns and the threat of a potential recession. The FOMC will next meet Oct. 29-30; its tentative meeting schedule for 2020 is now available.