Market analysis: The Federal Reserve is expected to cut interest rates this week, but the vote result may be "three splits"

The Federal Reserve is expected to cut its target range for the federal funds rate by 25 basis points to 3.75% - 4.0% on Wednesday. Generali Investments, however, expects a "triple split" in the decision-makers' vote: one dissident in favor of a larger 50 basis point cut, and possibly some in favor of keeping rates unchanged. That would create a "virtually unprecedented" split, said Paul Zangieri, a senior economist at the agency, which expects the Fed to cut rates again in December and make a final cut in Quarter 1 in 2026. Zangieri said that at the press conference, Federal Reserve Chairperson Jerome Powell is likely to describe the rate cut as a risk management measure, without giving any hints about the policy orientation of the December meeting.