The Federal Reserve is expected to cut interest rates once more when it meets on Thursday.
Markets are expecting the central bank to cut US interest by 25 basis points, from the benchmark fed funds rate’s current target range of 4.75%-5.0%.
Policymakers had cut the rate by 50 basis points last time around in September, with another reduction also expected in December’s meeting.
However, focus is set to be on any indication of the central bank’s outlook following Donald Trump’s victory in the US presidential election earlier this week.
“Today’s Federal Open Market Committee meeting will shed light on the central bank’s next steps,” City Index analyst Fawad Razaqzada commented.
“Chair Powell may steer clear of any commitment to a rapid easing cycle” though, Razaqzada added, “especially if he believes Trump’s policies could drive inflation”.
Evercore ISI global policy head Krishna Guha echoed the view, noting Powell would likely “seek to be a source of stability and calm” rather than passing “early judgment” on the election result.
The Federal Reserve’s decision is due at 2 PM Eastern Time.