Federal Reserve officials are likely to announce a third consecutive rate cut on Wednesday, but this process may be over. Concerns about continued inflation have caused serious divisions within the Bank of America, which may cause Federal Reserve Chairman Jerome Powell not to hint at any further action early next year. The Federal Reserve cut interest rates twice this fall, and cut interest rates by 1.5 percentage points over the past 15 months. Each further rate cut will bring the Fed's benchmark interest rate closer to the tipping point that can stimulate economic activity — and many officials are trying to prevent this from happening. Some officials believe that current interest rates are at a neutral level, which neither stimulates nor inhibits economic growth. Opposing views on the extent of the Federal Reserve's tightening are likely to lead to another split in decision-making. Some analysts even predict that as many as three officials will disagree. In the absence of new economic data, Powell's task of reaching consensus will only be more difficult — a ripple effect of the government shutdown that continued throughout most of October and November. The official November labor market data will not be released until December 16, and the inflation data is still two days away. The Federal Reserve will announce the interest rate decision at 2:00 p.m. local time on Wednesday in Washington, D.C., and will also release a committee statement and the latest economic forecast. Powell will hold a press conference in 30 minutes.

Federal Reserve officials are likely to announce a third consecutive rate cut on Wednesday, but this process may be over. Concerns about continued inflation have caused serious divisions within the Bank of America, which may cause Federal Reserve Chairman Jerome Powell not to hint at any further action early next year. The Federal Reserve cut interest rates twice this fall, and cut interest rates by 1.5 percentage points over the past 15 months. Each further rate cut will bring the Fed's benchmark interest rate closer to the tipping point that can stimulate economic activity — and many officials are trying to prevent this from happening. Some officials believe that current interest rates are at a neutral level, which neither stimulates nor inhibits economic growth. Opposing views on the extent of the Federal Reserve's tightening are likely to lead to another split in decision-making. Some analysts even predict that as many as three officials will disagree. In the absence of new economic data, Powell's task of reaching consensus will only be more difficult — a ripple effect of the government shutdown that continued throughout most of October and November. The official November labor market data will not be released until December 16, and the inflation data is still two days away. The Federal Reserve will announce the interest rate decision at 2:00 p.m. local time on Wednesday in Washington, D.C., and will also release a committee statement and the latest economic forecast. Powell will hold a press conference in 30 minutes.