The FOMC elects to cut interest rates in December to 3.5% -3.75%, but Powell siignals that policy may now by neutral, making a January cut less probable.

A cut is something of an “insurance policy against a shattering of the U.S. labor market,” UBS chief economist Paul Donovan noted this morning.

Only in June does a plurality—41.9%—emerge on CME FedWatch for a further cut to 3.25%.

The central bank is widely expected to announce a quarter percentage point, or 25 basis point, cut to its overnight lending rate at Wednesday's meeting.

A decision to hold off on further rate reductions risks drawing more criticism from the president.

The FOMC elects to cut interest rates in December to 3.5% -3.75%, but Powell siignals that policy may now by neutral, making a January cut less probable.