Happy Fed Week to all who celebrate!

On Wednesday, the Fed is widely expected to deliver another 0.25% rate cut. This move is already priced in by the markets. Any big reaction will likely come from what Fed Chair Jerome Powell says about future cuts and the broader outlook.

Another thing to watch: the Fed’s approach to its bond portfolio. Right now, the Fed holds about $6 trillion in Treasuries and mortgage-backed securities. As those bonds mature, the Fed has been letting them roll off instead of reinvesting the proceeds. If they decide to start reinvesting, it could mean tens of billions in new bond purchases each month — effectively adding another buyer to the market, which would help keep long-term rates from climbing. Some economists say that shift could have the same effect as another quarter-point rate cut.

Meanwhile, President Trump is still deciding who will replace Powell when his term ends next May. He’s reportedly narrowed it down to five candidates, and a decision is expected by year-end. Whoever gets the nod could move markets with their first comments on monetary policy.

Looking ahead, we’ll get fresh jobs data on November 7 and the next inflation report on November 12, which will make for a pivotal week. The next Fed meeting isn’t until December 17, so we’ll likely be in a holding pattern until those numbers come out. Any signs of softness in the job market or cooler-than-expected inflation could help push rates a bit lower.

Recap:

• ✅ Another 0.25% Fed rate cut expected this week
• 🏦 Possible bond reinvestment shift that could ease rates further
• 📅 Key data ahead: Jobs 11/7, Inflation 11/12
• 🏁 Final Fed meeting of the year: 12/17