The Federal Reserve has already made one move this year by cutting interest rates. Now, the question on everyone’s mind is simple: when will the Fed meet again, and should you expect more cuts before the end of the year? Let us break it down in plain language so you know what to watch for.
When is the next fed meeting
The Federal Open Market Committee (FOMC), the group that sets interest rates, meets several times a year. The next two scheduled meetings are:
- October 28–29
- December 9–10
These are the last two meetings of the year, and both are expected to be important for the direction of interest rates.
The Fed has already lowered its target range for the federal funds rate to 4% to 4.25% after a quarter-point cut in September. That cut ended nearly a year of holding rates steady at the higher 4.25% to 4.5% range.
Will the fed cut rates again
This is the big question for anyone with a mortgage, credit card, or investments. Right now, Wall Street traders are betting that the Fed will cut rates again at both upcoming meetings.
- The CME Group’s FedWatch tool shows a 93% chance of a quarter-point cut in October.
- For December, the odds are nearly the same at 92%.
If those cuts happen, the federal funds rate would fall by a total of 75 basis points by the end of the year. That could make borrowing a little cheaper and provide a small boost to the economy.
What factors are the fed watching
Federal Reserve Chair Jerome Powell has made it clear that decisions will be based on data, not politics. In his words, the Fed will keep making choices on a “meeting-by-meeting” basis and remain “well-positioned” to react to economic changes.
The two biggest factors the Fed is watching are:
- Inflation: Prices have been cooling, but the Fed wants to make sure inflation moves closer to its 2% target.
- Job market: Hiring has slowed and unemployment is creeping higher, which could be a reason for more cuts to support growth.
What the new dot plot tells us
Every few months, the Fed releases its “dot plot,” which shows how each Fed official sees the path of interest rates going forward. The most recent update shows:
- A majority of Fed officials see two cuts this year.
- One official thought rates should have stayed where they were.
- Another, widely believed to be new Fed Governor Stephen Miran, projected much sharper cuts that would bring rates down closer to 3% by year-end.
This wide range of views highlights how much uncertainty there is inside the Fed itself.
How politics may play a role
While the Fed insists it is independent, politics are always in the background. President Donald Trump has repeatedly pushed for bigger and faster cuts, at one point calling Powell a “numbskull” for keeping rates steady.
Stephen Miran, a recent Trump appointee to the Fed, already voted in favor of a larger half-point cut rather than the smaller quarter-point move. His presence may tilt the debate inside the Fed toward more aggressive action.
What this means for you
If you are wondering why this matters, here is what rate cuts can affect in your daily life:
- Mortgage rates: They tend to move lower when the Fed cuts, making home loans cheaper.
- Credit cards: Interest rates on revolving credit usually drop, though slowly.
- Savings accounts: The downside is that yields on savings could also fall.
- Investments: Stock markets often welcome rate cuts since they can boost growth.
So, whether you are paying off debt, thinking of buying a home, or saving for retirement, the Fed’s next moves could hit your wallet directly.
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