If the US Fed goes for an interest rate cut this time, it would be the first time in more than four years. The Fed had previously slashed the rate in 2020 to near-zero in order to support the US economy through the Covid-19 pandemic.

Jerome Powell-led rate-setting panel reduced the policy rate by 50 bps for the first time in four years after leaving the benchmark rates at the 23-year high mark for eight consecutive meetings since July 2023.

Recent weak growth data and benign inflation data has sealed the fate of the Fed rate cut but economists hold a mixed view on the policy outcome.