Fed insider says FOMC cut today, but then “a much more cautious tone about further cuts”

The Federal Reserve’s Federal Open Market Committee (FOMC) is expected to cut Fed Funds by 25bp at today’s meeting.

• Statement due at 1400 US Eastern time

Looking further out is muddier, though. The Wall Street Journal’s Nick Timiraos:

• Over the past year, officials have slowly raised their estimates of where rates will settle out, and they could continue to do so in projections this week.
• Some have begun to signal that they would need to see more concrete evidence that inflation is improving or that the labor market is decaying before continuing to reduce borrowing costs.

More here (the Journal is gated):

• Will the Fed Keep Cutting in 2025?

This article was written by Eamonn Sheridan at www.forexlive.com.