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Markets are optimistic about a rate cut
Equity index futures pointed to a higher open for Fed Week Monday morning, following through on solid gains for the first week of December. The S&P 500 closed higher for a fourth straight session and its ninth out of 10 on Friday.
“The stock market may have bounced back strongly from its November pullback,” E*TRADE Managing Director Chris Larkin observes, “but a new up leg to its rally is still a work in progress.”
According to Larkin, what the FOMC does and Federal Reserve Chair Jerome Powell say on Wednesday “will likely determine whether the S&P 500’s October record highs turn out to be genuine resistance level or just the latest notch on the bull market’s belt.”
FedWatch shows a near-90% probability the FOMC will cut the target range for the federal funds rate by another 25 basis points, following similar moves in September and October. As Larkin notes, recent incoming economic data highlight both “ongoing labor-market softness and sticky inflation.
So lower interest rates at this meeting “might not be a slam dunk” despite market optimism. “As is often the case, though,” Larkin concludes, “Chair Powell’s press conference could play a big role in shaping the market’s short-term response.”
– David Dittman
How can you invest for lower interest rates?
With the Federal Reserve expected to cut rates at its final meeting of 2025, many investors may be wondering how they can prepare their portfolios.
One way is to seek out high-quality growth stocks, which tend to see outsize benefits from lower interest rates.
This happens for two reasons, says Kiplinger contributor Charles Lewis Sizemore, CFA. For one, lower rates make capital cheaper and “young, fast-growing companies often rely on external funding.”
Additionally, lower interest rates boost the current value of future profits, which increases valuations for firms with long-term earnings potential.
Read more: How to Invest for Fall Rate Cuts by the Fed
Who gets to vote at the December Fed meeting?
The Federal Open Market Committee (FOMC) has 12 total members, eight permanent and four who rotate each year.
The eight permanent voting committee members include the Fed chair and vice chair, the five Fed governors and the president of the New York Fed.
Four regional Fed presidents are rotated in each calendar year.
The 2025 FOMC voting committee consists of:
- Fed Chair Jerome Powell
- Vice Chair Philip Jefferson
- Fed Governor Michael Barr
- Fed Governor Michelle Bowman
- Fed Governor Lisa Cook
- Fed Governor Stephen Miran
- Fed Governor Christopher Waller
- New York Fed President John Williams
- Boston Fed President Susan Collins
- Chicago Fed President Austan Goolsbee
- St. Louis Fed President Alberto Musalem
- Kansas City Fed President Jeffrey Schmid
In 2026, the presidents from Cleveland, Philadelphia, Dallas and Minneapolis will rotate in as FOMC voting members, according to the Federal Reserve. Additionally, Jerome Powell’s term as Fed chair is up in May.
– Karee Venema
Fed meeting schedule for 2026
The next Fed meeting, which runs from December 9 to December 10, marks the final gathering of 2025. Looking ahead to 2026, the Federal Open Market Committee will hold its first meeting of the new year on January 27 to 28.
“The committee meets eight times a year, or about once every six weeks,” writes Kiplinger contributor Dan Burrows in his feature, “When Is the Next Fed Meeting?“.
The Federal Open Market Committee “is required to meet at least four times a year and may convene additional meetings if necessary,” Burrows adds, noting that “the convention of meeting eight times per year dates back to the market stresses of 1981.”
Fed meetings last two days and wrap up with the release of a policy decision at 2 pm Eastern Standard Time. This is typically followed by the Fed chair’s press conference at 2:30 pm.
Here is the full Fed meeting schedule for 2026:
- January 27 to 28
- March 17 to 18
- April 28 to 29
- June 16 to 17
- July 28 to 29
- September 15 to 16
- October 27 to 28
- December 8 to 9
– Karee Venema
Karee Venema
With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021, and oversees a wide range of investing coverage, including content focused on equities, fixed income, mutual funds, ETFs, macroeconomics and more.
