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Investors say easier policy could extend Wall Street’s rally, though much of the optimism may already be priced in. Markets have nearly six quarter-point cuts factored in by end-2026, Reuters reported.

Historically, the start of an easing cycle has supported stock gains over the following year. Lower rates could particularly benefit cyclical sectors such as banks, homebuilders, materials and smaller firms, creating new market leadership beyond megacap technology stocks.

Drew Pettit, Director of US Equity Strategy at Citi, said a 25 basis point cut from the Federal Reserve is already fully priced in, meaning markets may see a short-term pause.“Technically, it could be a sell-the-news type of event because it’s fully priced into markets. But if earnings estimates are unchanged, and we get good reports for Q3 and good 2026 outlooks, it’s a buying opportunity,” Pettit told CNBC-TV18.He argued that a brief pullback would be a healthy sign of a bull market rather than the start of a downturn.  here

A long-dormant Bitcoin whale transferred 1,000 BTC — worth about $116 million — to new wallets on Wednesday, just hours before the US Federal Reserve’s policy decision, according to TradingView data cited by Lookonchain.

The stash was originally acquired around 12 years ago at roughly $847 per coin, amounting to $847,000 at the time. The transfer comes as markets await the Federal Open Market Committee’s meeting, expected to deliver the first US rate cut of the year.

While a rate cut is widely expected, the path of interest rates beyond September remains uncertain. Attention will turn to the Fed’s “dot plot,” which outlines policymakers’ projections for rate moves through 2025.

Markets will also closely track Fed Chair Jerome Powell’s comments at his press conference, scheduled to begin at 2:30 p.m. ET, for further clues on the policy outlook.

US stock futures were little changed on Wednesday as markets awaited the outcome of the Federal Reserve’s policy meeting, widely expected to deliver the first interest rate cut of 2025.

Dow Jones Industrial Average and S&P 500 futures hovered near the flatline, while contracts on the tech-heavy Nasdaq 100 also traded steady. Major Wall Street benchmarks had closed Tuesday marginally weaker.

Markets are pricing a 96% probability of a 25 basis points cut and a 4% chance of a larger reduction. Analysts say a softening labour market could outweigh inflation concerns in the Fed’s decision.

Gold prices slipped on Wednesday, retreating from a record peak as investors booked profits and a stronger dollar weighed on sentiment ahead of the Federal Reserve’s policy announcement later in the day.Spot gold was down 0.7 percent at $3,663.93 per ounce as of 0905 GMT, after touching a record high of $3,702.95 on Tuesday. US gold futures for December delivery also fell 0.7 percent to $3,700.10.

The Senate on September 15 narrowly approved President Donald Trump’s nominee Stephen Miran to the Fed Board of Governors, confirming him in a 48–47 vote just ahead of the policy meeting.

Miran, who also chairs the White House Council of Economic Advisers, will complete the term vacated by former Fed Governor Adriana Kugler, who resigned in August.

His appointment without stepping down from the CEA raises questions about potential political influence on Fed policy, EY chief economist Gregory Daco told AFP. Economists are now watching whether Miran aligns with Trump’s calls for a sharper rate cut at the upcoming FOMC meeting.

“That’s not a good place to be,” KPMG chief economist Diane Swonk told AFP, pointing to the twin risks of inflation and recession. “It’s the stagflation reality that we’re living in now,” she said, describing it as a “mild bout” of sluggish growth coupled with rising prices.Meanwhile, Fed governors Christopher Waller and Michelle Bowman — who dissented at the last meeting in favour of a rate cut — could now push for an even steeper 50 basis points reduction.

Economists anticipate sharper divisions within the Federal Open Market Committee as members weigh the twin challenges of sticky inflation and a softening labour market.

Ordinarily, the Fed might lean towards keeping rates elevated to steer inflation closer to its 2% target, or opt for cuts to cushion a weakening jobs market. This time, concerns about employment are expected to take precedence, even as inflation holds well above target.

Analysts say the setup could produce dissenting voices on both sides of the debate, even if the committee ultimately delivers a 25 basis points cut — a split last seen in 2019.

Inflation in the US remains above the US Fed’s 2% goal and can increase further if the tariffs push costs up.

The US CPI increased by a seasonally adjusted 0.4% in August, double the 0.2% increase in July. This has pushed annual inflation to 2.9%, which is in-line with the economists’ expectations.

The Bloomberg Dollar Spot Index declined for the third consecutive day, declining 0.1% as Street awaited the US Fed’s decision and further guidance.

The US job growth cooled in August with unemployment rate increasing to its highest since 2021.

Also, as per data released last, the US job growth was far less robust in the year till March than previously reported.

The number of workers on payrolls is likely to be revised down by 9.11 lakh or 0.6%, as per the US government’s preliminary benchmark revision. The final figures are due early next year.

China’s internet regulator has told the country’s biggest tech companies to stop buying all Nvidia’s AI chips and terminate their existing orders, news agency Bloomberg reported, citing an FT report that cited three sources.

Earlier this week, US President Donald Trump predicted a “big cut” from the US Fed.

“I think you have a big cut. It’s perfect for cutting,” he told reporters on Sunday.

The US President has been pressuring US Fed Chair Jerome Powell to cut rates and has also repeatedly encouraged him to resign.

US benchmark indices paused on Tuesday, September 16, following a strong rally that propelled them to a record high.

The Dow Jones traded in a 300-point range and closed 120 points lower, while the S&P 500, traded in a 25-point range. Meanwhile, the broader market index, with the Nasdaq also closed marginally below the flat line.

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The US Fed is likely to cut interest rates by 25 basis points today. This will be the Fed’s first rate cut in 2025, so far.

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