The nine days before Federal Reserve officials gather to decide on the next move with interest rates saw a number of important events that could influence their decision. From key employment and inflation data to the US presidential election.
Even so, it is not clear which of those factors will likely change the US central bank's decision from what is widely seen as the most likely next step. The second interest rate cut in a series aimed at ensuring the US labor market remains healthy and the economy does not fall into recession as inflation eases.
An initial rate cut by the Federal Reserve in September lowered the policy rate by half a percentage point to a range of 4.75%-5.00%, a drastic change after more than two years of dealing with the highest inflation in decades and fueled by signs of labor market weakness over the summer .
Since then, however, data has generally come out stronger than expected, with consumer spending and job creation looking strong, and price pressures picking up slightly. Citigroup's US Economic Shock Index is at a six-month high.
Almost all Federal Reserve officials who have spoken publicly since the rate cut on September 18 said they were satisfied with the unemployment rate at 4.1% and inflation now closer to the central bank's 2% target than before.
Updated projections published at last month's meeting showed each of them believed there was still at least one full percentage point of rate cuts before policy rates reached long-term "neutral" levels. The Summary of Economic Projections or SEP shows the majority believe there is still at least two percentage points of room for reduction.
Federal Reserve officials this week will receive the latest reading on their preferred measure of inflation, which is expected to show underlying price pressures remain elevated while annual headline inflation eased to 2.1%.
