US Fed expected to make third straight rate cut despite divisions
TDT | Washington
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The US Federal Reserve is expected to deliver a further interest rate cut despite divisions among its ranks, with chief Jerome Powell's ability to secure support from fellow policymakers put to the test.
Financial markets expect a third consecutive 25 basis points reduction, bringing levels to a range between 3.50 percent and 3.75 percent. This would be the lowest in around three years.
But fissures within the Fed have grown even as policymakers slashed rates twice in recent months to boost the weakening employment market -- and the central bank faces a turbulent year ahead.
Officials opened their second day of deliberations at 9:00 am (1400 GMT), with their decision to be unveiled later Wednesday.
"We look for at least two dissents in favor of no action and one in favor of a larger cut," said Michael Feroli, chief US economist at JP Morgan.
"There are almost equally compelling reasons to cut and to hold," he added in a recent note.
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