Asia-Pacific markets were set for a higher open Wednesday as investors awaited the Federal Reserve’s interest rate decision, widely believed to bring a second straight 25 basis point cut.
Markets are assigning a nearly 100% probability that another quarter-point reduction, on the heels of September’s cut, would bring the federal funds rate to a range between 3.75%-4.00%.
“If [Fed chair Jerome Powell] comes off dovish, bets for future Fed cuts will increase and provide more fuel to market momentum,” veteran investor Louis Navellier wrote in a daily note.
The federal funds rate, set by the Federal Open Market Committee, is the interest rate banks charge each other for overnight loans. While it doesn’t directly affect consumers, the Fed’s moves often influence borrowing costs for mortgages, credit cards and other loans.
Japan’s Nikkei 225
