Minutes of September 17-18 FOMC meeting will be a focus in the US session today. Back then, Fed lowered their benchmark interest, the second time this year) by -25bps to 1.75-2.00%. The minutes should provide more details regarding the debate between the divided policymakers.
Fed chair Jerome Powell sounded non-committal in his comments this week. He insisted that “policy is not on a preset course” and reiterated “we will be data dependent, assessing the outlook and risks to the outlook on a meeting-by-meeting basis.” His cautious stance was justified as outlook would heavily depend on results of upcoming US-China trade talks this week.
As of yesterday, Fed funds futures are pricing in 83.9% change of another rate cut to 1.50-1.75% on October 30.