Fed Rate to be Cut in the Morning

The smart money stateside has the U.S. Federal Reserve delivering a third straight interest-rate cut on Wednesday. Nearly 80% of the fund managers, economists and strategists surveyed by various media outlets expect a quarter point rate reduction this week. However, 63% believe the Fed will pause cutting rates for the remainder of the year. The respondents believe the next cut will come in February, on average.

All eyes will be on chairman Jerome Powell’s signal on where the Fed stands in the easing cycle. The Federal Open Market Committee announcement is scheduled for 2:00 p.m. ET.

At least one Wall Street expert has been quoted as saying the anticipated cut will be the market’s "magic sauce," giving the economy a needed jolt.