US Fed meeting outcome: The US Federal Reserve is set to announce its two-day policy outcome on Wednesday, 29 October 2025, where the Federal Open Market Committee (FOMC) will determine the path of the key interest rates in the US economy.
In its September 2025 policy outcome, the US Federal Reserve cut its benchmark interest rates by 25 basis points to the range of 4.00% to 4.25% as the central bank poised itself to analyse more economic data for any further potential rate cuts in 2025.
Experts and the stock markets are predicting an upcoming 25 basis points interest rate cut as the Jerome Powell-led committee deliberates on the policy decision, factoring in the multiple economic indicators of the American economy.
Here’s what experts think
Harshal Dasani, Business Head, INVAsset PMS, said that an interest rate cut this week will mark the start of a ‘synchronised policy easing phase’, which also holds a potential to reprice asset classes like equities, bonds and commodities.
“The decision is being shaped by September inflation easing to around 3%, weaker job additions, and cautious business sentiment due to the recent U.S. government shutdown. Several Fed officials have signalled comfort with a gradual easing cycle, emphasising that while inflation remains above the 2% target, disinflation trends are broadening,” said the expert.
“A cut this week would further lower U.S. yields, potentially softening the dollar and reviving capital flows into emerging markets such as India. For global investors, it also marks the beginning of a synchronised policy easing phase, which could reprice risk assets across equities, bonds, and commodities,” said Dasani.
If the Federal Reserve cuts its rate on Wednesday, then it will be a move of the central bank towards backing growth prospects amid a moderate inflation level in the US economy.
“Futures data indicate near-total certainty of the move and strong expectations of another cut by December. This would mark the second consecutive reduction after September’s 25-bps cut, reflecting the Fed’s pivot toward supporting growth amid moderating inflation and a cooling labour market,” said Dasani.
Are markets already pricing in rate cuts?
Experts are certain that the stock markets have priced in the rate cuts as the benchmark indices in the United States hit their record high levels during Tuesday’s Wall Street session.
Market expert Avinash Gorakshakar also said that there is a rising possibility that the US Fed can cut its benchmark interest rates in the October policy outcome. He also said that the stock markets have ‘largely priced’ in the potential rate cut move ahead of the policy decision.
“There is a growing possibility that the US Federal Reserve may cut the benchmark interest rate by 25 basis points in the upcoming policy following the recent decline in inflation. Equity markets appear to have largely priced in the potential rate cut, as reflected in the recent upward movement,” said market expert Avinash Gorakshakar.
Harshal Dasani also said that the markets have priced in the 25 bps rate cuts for the upcoming policy decision. However, all eyes now lie on Jerome Powell and the US Fed for the future outlook of the interest rates in 2025.
“Markets are fully pricing in a 25-basis-point rate cut by the U.S. Federal Reserve at its policy meeting concluding on October 29, 2025, which would bring the target range down to 3.75%–4.00%,” said Dasani.
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Key Takeaways
- The US Fed is expected to cut interest rates by 25 basis points on Wednesday, 29 October 2025.
- FOMC cut its benchmark rates by 25 basis points to the range of 4.00% to 4.25% in September 2025.
- Experts suggest that a rate cut can potentially reprice asset classes like equities, bonds and commodities.