US Federal Reserve Begins Key Meetings Amid Rate Cut Expectations

The Federal Reserve is conducting a critical two-day meeting expected to result in the first rate cut of the year, likely a quarter-point reduction, which would make borrowing costs slightly cheaper for consumers. This decision comes amid a softening U.S. labor market and persistent inflation, with investors wondering if this marks the start of a broader easing cycle. President Donald Trump's nominee, Stephen Miran, a White House economic adviser, is set for a Senate confirmation vote to join the Fed Board of Governors, replacing a recent resignation. Despite President Trump's attempts, Fed Governor Lisa Cook remains on the board following a court ruling protecting her position. Globally, markets are reacting to varied economic signals, including weak Chinese growth prompting expectations for fiscal stimulus, and geopolitical tensions influencing oil prices. Other central banks like the Bank of Canada are also expected to cut rates, while the Bank of England and Bank of Japan are likely to maintain current levels, as investors watch for further economic data and policy moves.