The Federal Reserve is expected to cut interest rates this week, but the vote may be split

The Federal Reserve is expected to cut the target range for the federal funds rate by 25 basis points to 3.75%–4.0% on Wednesday. However, Generali Investments expects that the vote among policymakers may be "three-way split": one dissenter supports a larger 50 basis point rate cut, and there may be some dissenters who support keeping interest rates unchanged. Paul Zanghieri, a senior economist at the agency, said this would create an "almost unprecedented" disagreement. The agency expects the Fed to cut interest rates again in December and make a final rate cut in the first quarter of 2026. Zanghieri said that at the press conference, Fed Chairman Powell may describe the rate cut as a risk management measure without giving any hint about the policy orientation of the December meeting. (Jinshi)