Fed rate cut announcement today: Probability, live stream, date, time, and how to watch

"The economy has had a volatile year marked by ongoing headwinds and uncertainties. Persistent inflation, unpredictability around tariffs, and a stock market that many fear is in the midst of an AI-fueled bubble are among the factors impacting consumers' spending power. But there is one event today that will hopefully deliver some much-needed certainty to the economy and broader markets: the Federal Reserve's interest rate cut announcement. Here's what you need to know about a possible Fed rate cut today."

"One of its main responsibilities is setting the country's interest rates. These interest rates are set by the Fed's primary policymaking body, called the Federal Open Market Committee (FOMC). The FOMC is led by the chair of the Federal Reserve, who is currently Jerome Powell. The FOMC considers a wide array of data that informs its decision to cut interest rates or not. That data includes labor reports, inflation rates, consumer confidence numbers, and gross domestic product (GDP) information."

"The main benefit of cutting interest rates is that it lowers the cost of borrowing money. If money is cheaper to borrow, consumers are more likely to take out loans, including mortgages, car loans, and increased credit card spending. Businesses are also more likely to take out loans, since borrowing is cheaper. Companies typically use loans to expand their operations, boost hiring, or buy needed equipment or supplies."

The economy experienced a volatile year with persistent inflation, tariff unpredictability, and concerns of an AI-driven stock bubble reducing consumer spending power. The Federal Reserve sets interest rates through the Federal Open Market Committee (FOMC), which evaluates labor reports, inflation, consumer confidence, and GDP before voting to raise, lower, or maintain rates. The current policy rate stands at 3.75% to 4.00% (375 to 400 basis points). Cutting rates lowers borrowing costs for consumers and businesses, encourages loans for homes, autos, and corporate investment, injects liquidity into the economy, and can boost stock and cryptocurrency markets.

Read at Fast Company