Money Minute Monday 28 October: US set for an interest-rate cut?

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All eyes will be on the Federal Reserve this week as the US central bank announces its next decision on interest rates on Wednesday. The Fed is expected to cut interest rates by a quarter of a percentage point. However, with fears over a recession rising in the US, investors will focus on how open the Fed appears to cutting rates further in December.

Meanwhile, on Friday, we have the monthly non-farm payrolls data in the US. This is one of the most important data releases of the month, as it gives a view of the health of the US employment market. Again, investors are keenly watching out for any sign that weakening economic growth is showing up in the jobs market.
If the pace of wage growth and employment gains slackens off, then that will make it easier for the Fed to justify cutting interest rates further.


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