The Federal Reserve (Fed), the US central bank, will be in the spotlight on Wednesday, 18 September at 6:00 p.m. UTC, as they announce their latest interest rate decision. The Fed has kept its federal funds rate (FFR) unchanged for over a year. It last raised its base rate in July 2023, citing inflationary pressures. In the current environment of lower inflation and increased concerns about the labour market, reducing the interest rate is possible. According to Reuters, most economists expect the Fed to cut the key rate by at least 25 basis points (bps). Octa analysts believe that the stock market may perceive a 25 bps reduction in the interest rate negatively, and they are clearly expecting a more significant decline. Octa analysts do not expect an interest rate change of more than 25 bps at the upcoming meeting but believe that a rate cut of 50 bps is possible.