Federal Reserve Weighs Rate Cut Amid AI Bubble Burst

The Federal Open Market Committee is scheduled to meet on Wednesday, October 28, 2026, to determine the future of the Federal Funds rate. While current expectations suggest the committee will maintain the rate at 3.75-4.00%, speculation is growing that the Federal Reserve may adopt a dovish stance.

Policymakers are considering a rate cut to preserve financial stability as the burst of the AI bubble accelerates. While a standard adjustment is anticipated during the scheduled meeting, an emergency rate cut could occur as early as next week. Such a move remains contingent on the performance of the S&P 500, with an emergency action deemed possible only if the index experiences a sharp decline in the coming days.