The Federal Reserve will issue updated economic and rate projections Wednesday
It's Fed Day, and the central bank's policymakers are unusually divided. The chances of another quarter-point cut remain high, but insight into the deep divisions within the Federal Reserve, plus how Chair Jerome Powell explains the Fed's thinking, could make for a volatile trading session later today.
Stock indexes slipped in morning trading, declining less than 0.5%.
Investors have grown less confident about cuts next year, partly due to cautious comments by Kevin Hassett, the favorite to be Powell's replacement. That casts extra attention on the "dot-plot" projections due Wednesday.
Hassett said Tuesday he wouldn't bow to any potential political pressure to lower rates if he gets the role. President Trump, who has said he wants the next chair to be committed to cutting, plans to hold final interviews in the coming days.
Early Wednesday, the dollar weakened a tad, particularly against the euro and the Swiss franc. Bellwether 10-year Treasury yields, which have pushed up toward 4.2%, were little changed.
Aside from the Fed decision, earnings are due from software company Oracle, whose debt-fueled spending spree has made it an AI bellwether. Billionaire co-founder and Trump ally Larry Ellison is backing his son, Paramount CEO David Ellison, in his hostile takeover bid for Warner Bros. Discovery.
Recent trading in other markets:
Silver futures hit another record intraday high, topping $62.
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(END) Dow Jones Newswires
12-10-25 1001ET
