The Federal Reserve is poised to cut interest rates next week, the first such move since the COVID-19 pandemic. Investors are divided on whether the cut will be 25 or 50 basis points, with a growing sentiment for a more substantial 50 basis point cut due to signs of a weakening labor market and rising core inflation. Market expectations for a larger cut have surged, driven by reports from major financial publications and commentary from financial institutions like Goldman Sachs and Pantheon Macroeconomics. The Indian rupee is expected to strengthen against the U.S. dollar in anticipation of this decision, and the dollar index has already dropped. Nonetheless, some analysts believe that current economic conditions do not warrant an aggressive cut. The Fed's decision will significantly impact global markets, especially as other central banks have already initiated rate cuts.