Fed likely to cut rates, may signal pause

The US Federal Reserve is expected to cut interest rates on Wednesday as policymakers grapple with gaps in economic data caused by the recent govt shutdown and work through competing views about the risks facing the economy. The anticipated quarter percentage point cut may come with a non-committal approach to next year’s rate path given the division among policymakers between those skeptical about the need for more rate reductions in the face of still-elevated inflation and those who feel the economy and job market may weaken if the U.S. central bank doesn’t bring down borrowing costs.New quarterly economic projections to be released alongside the latest rate decision will show how Fed officials expect the economy to evolve in 2026 along with what they see as the appropriate path of rates. Those year-ahead forecasts, however, often become outdated quickly due to incoming data and say little about the pace of expected policy actions.(This is a Reuters story)