The Bond Buyer: FOMC preview: Divided panel will cut 25 bps, next move unclear

Corpay Chief Market Strategist Karl Schamotta noted, "Markets overwhelmingly expect a hawkish cut on Wednesday, with the statement language, dot plot projections, and Chair Powell's words all pointing to a more gradual pace of easing in the coming months." Slowing job growth, with the unemployment rate rising for three consecutive months and other factors raise "the risk of a non-linear deterioration in labor markets," while "inflation remains stubbornly high, financial conditions are remarkably loose, and consumer spending is still going gangbusters, making it unlikely the entire rate-setting committee will vote to approve the move."

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