After months of arguments and promises about the economy by the two presidential candidates, The Federal Reserve meets over the next two days to do something that will actually help shape it.
Most analysts think another interest rate cut is coming to further tame inflation.
As uncertainty swirls around how the election result will affect the economy, the Federal Reserve's next move appears to be a sure thing: another interest rate cut to ease inflation.
"You know, everything is, I think trending in the direction that we would want the economy to trend in," said Aaron Cirksena, CEO of MDRN Capital.
The Federal Reserve is set to cut interest rates, marking its second reduction this year. Economists expect the Fed will lower its benchmark rate by a quarter point to around 4.6%.
This decision, led by Fed Chair Jerome Powell, aims to support the recent decline in inflation, which fell to 2.4% in September — barely above the Fed's 2% target.
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"It's showing to be about as resilient as it can be, which is why I think the Fed is getting to the point where they're saying, 'ok, labor market's still fairly strong, right? Everything going in the direction we want,'" said Cirksena.
Rate cuts typically encourage borrowing and investment, but this time, the Fed's goal is to adjust to lower inflation.
Powell will likely field questions at his news conference Thursday about the outcome of the presidential race and how it might affect the economy and inflation.
He can be expected to reiterate that the Fed's decisions aren't driven by politics.
For the world economy the managing director of the international monetary fund describing it last month as "anxious times."
Regardless of the election, the Fed's immediate focus remains steady: manage inflation while adjusting rates gradually to support a healthy economy.
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