The Fed is widely expected to cut rates by 25bps to 3.75-4.00% on Wednesday, October 29, at 1:00 PM EST, with Chair Powell's presser at 1:30 PM EST, marking a second consecutive cut amidst easing inflation and a softening labor market, despite political pressure. Wednesday evening at 7:00 PM EST, the Trump-Xi meeting will address trade and tariffs. Thursday at 7:30 AM EST brings critical Q3 GDP data, with Atlanta Fed predicting 3.9% growth, alongside Core PCE. Friday's Core PCE (7:30 AM EST) further clarifies inflation. Next Monday, ISM Manufacturing PMI (10:00 AM EST) likely shows continued contraction.
Traders should brace for volatility around Wednesday's Fed announcement and Powell's press conference, potentially impacting USD and equities. Monitor Thursday's GDP and PCE data for growth and inflation signals, which could influence future Fed policy. The Trump-Xi meeting could spark significant market shifts depending on trade deal progress.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.