Fed on track for rate cut


Hot seat: Powell at an event in California. Economists are predicting the US central bank will make two more reductions next year. — Bloomberg

Washington: US Federal Reserve (Fed) chair Jerome Powell is expected to push through another quarter-point interest-rate cut this week despite growing unease among fellow policymakers that inflation remains too high.

The Fed delivered a second straight reduction in October driven by the summer’s sudden deterioration in the US labour market. But that was followed by an outburst of hawkish concern from some officials, including five who vote on policy this year, signalling hesitancy or unwillingness to support a third move in December.

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