The Latest Breaking News from the Federal Reserve

The move is widely expected – but will still be studied closely as dark clouds loom on the US horizon

The Federal Reserve is gearing up to announce its first interest rate cut for more than four years on Wednesday, with policymakers expected to debate how big a move to make less than two months before the US presidential election.

September S&P 500 E-Mini futures (ESU24) are up +0.23%, and September Nasdaq 100 E-Mini futures (NQU24) are up +0.08% this morning, while Treasury yields slumped after fresh U.S. economic data left investors uncertain about the size of an anticipated interest rate cut from the Federal Reserve next week.

September S&P 500 E-Mini futures (ESU24) are up +0.23%, and September Nasdaq 100 E-Mini futures (NQU24) are up +0.08% this morning, while Treasury yields slumped after fresh U.S. economic data left investors uncertain about the size of an anticipated interest rate cut from the Federal Reserve next week.

Asian markets mostly rose Friday and the yen sat around nine-month highs after another healthy day on Wall Street as investors gear up for an expected US interest rate cut next week.

The race is already on to predict the trajectory of future reductions to borrowing costs.

A Federal Reserve interest rate cut, expected next week, is one of many influences on mortgage rates, along with inflation, job growth and a shrinking or thriving economy.

The U.S. economy appears to have cleared the final hurdle for the Federal Reserve to reduce interest rates next week with Thursday's data showing wholesale prices on target with projections.

A surge in tech firms Thursday helped Asian markets track a Wall Street rally after data showed US inflation at a more than three-year low, reinforcing expectations the Federal Reserve will cut interest rates next week.