Federal Reserve's Rate Cut Outlook

The upcoming Federal Reserve meeting has sparked discussions around the likelihood of rate cuts, particularly following recent inflation data. The expectation is shifting towards a 25 basis point cut rather than a more aggressive 50 basis point reduction, especially given that core inflation metrics showed a slight increase. For investors, a gradual approach from the Fed indicates a focus on preventing a potential recession rather than making drastic policy changes. This measured response suggests that the economic growth remains resilient, as evidenced by a stable unemployment rate and job additions.