The Federal Reserve is expected to cut interest rates by 25 basis points on Thursday and avoid any unnecessary shocks just the election of Donald Trump as the next president.
Fed policymakers need to understand the latest data showing a strong economy, persistent inflation, and a clouded job market due to weather and labor strikes.
And there will likely be a debate between those who want to reduce rates, those who support a delay, or those who support reductions accompanied by language that indicates a more gradual approach to future reductions.
Pare observers expected central bank chairman Jerome Powell to reach a consensus on a small reduction, after a large reduction of 50 basis points in September.
There are concerns that Trump's policies could raise prices and wages, making the Fed's task of lowering inflation to its 2% target more challenging.
Powell is likely to refrain from commenting on the impact of the new administration's policies and argued that the Fed decided to cut rates again to maintain a strong US economic performance while inflation remains moderate.
There is also the question of whether Trump will threaten the Fed's independence. During his first term, Trump often criticized Powell and publicly pressured the Fed to do what he wanted, even suggesting negative interest rates.
Powell is also likely to insist, as he has done throughout the year, that politics does not influence Fed policymakers' decisions.
