Fed Expected to End Rate-Cutting Cycle This Week

• The Fed is expected to hold interest rates steady, with attention on commentary regarding neutral rates and the labor market.
• Political dynamics, including DOJ subpoenas and Chair Powell's 'assertive posture' against the White House, will be a key focus.
• The process to replace Chair Powell is anticipated to be complicated and lengthy, with potential Senate confirmation hurdles tied to the DOJ investigation.

The upcoming Federal Reserve rate decision is expected to hold rates steady, with market focus shifting from policy to the political complexities surrounding the central bank. Discussions will likely center on Chair Powell's stance against White House pressure and the challenging, potentially prolonged process of nominating and confirming a new Fed Chair amidst ongoing Department of Justice investigations.