Wall Street is expecting a 25bps cut from Powell, and little talk of a December cut

With the government still shut down, the Federal Open Market Committee (FOMC) will be making its decision about America’s base interest rate today without some key data. So when Chairman Jerome Powell announces the outcome of the meeting in a press conference this afternoon, analysts are expecting him to deliver less insight than usual into the health of the economy.

Wall Street is largely expecting a cut to be confirmed today. Despite likely arguments from more dovish members of the FOMC that a cut of 50 basis points is appropriate, markets have priced in a 99.9% certainty that a 25bps cut will the outcome. Per CME’s FedWatch barometer , interest rate traders are pricing a 0% chance of a 50bps cut, and a 0.1% chance of a hold.

While the FOMC will still have a host of data to base its