The Federal Reserve (the US central bank) is meeting today to decide on interest rates, in what is likely to be one of the most difficult meetings in years. The world is awaiting the Fed's decision, expected later today, with an anticipated interest rate cut of about 25 basis points. Investors have scaled back their expectations for interest rate cuts in 2026 due to persistent concerns about inflation and expectations of greater resilience in the US economy. Yesterday's data showed a modest increase in US jobs in October after a surge in September. White House economic advisor Kevin Hassett, the frontrunner for the Federal Reserve chairmanship, told the Wall Street Journal yesterday that there is 'ample room' for further interest rate cuts. He added that if inflation rises, the calculations could change.
