Fed Rate Cut Expected, Honda-Nissan Merger Rumors Stir Markets

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FED,Interest Rates,Merger Rumors

Investors anticipate the Federal Reserve's third consecutive rate cut, focusing on economic projections and Chair Jerome Powell's comments for insights into future rate actions. Meanwhile, rumors of a possible merger between Honda and Nissan are adding volatility to the market. The Dow Jones Industrial Average continued its decline, and oil prices fluctuated as traders await the Fed's decision and consider the impact of new sanctions on Russia's energy exports.

Investing.com – The Federal Reserve is all but certain to deliver what would be its third straight rate cut, futures are edging higher, and Honda and Nissan are reportedly exploring a merger.With a rate cut already baked in investors are instead focusing on the Fed's economic projections and comments from Chair Jerome Powell, for any insights on how aggressive the U.S. central bank may be in cutting rates in 2025.

Analysts at Standard Chartered expect the Fed to follow up with another rate cut in January amid ongoing softness in the labor market. The European Union on Tuesday adopted a fresh package of sanctions against Russia over its invasion of Ukraine, targeting its shadow fleet used for transporting crude or petroleum products. Britain also sanctioned ships carrying illicit Russian oil.The Fed is widely expected to cut interest rates for the third time since its policy easing cycle began. Lower rates decrease borrowing costs, which can boost economic growth and demand for oil.

While the company has been investing heavily in its own EV business, Foxtron Vehicle Technologies, an acquisition of Nissan would provide immediate access to existing models and a global sales network.) are also in talks about a possible merger as the automakers grapple with challenges in the EV industry, particularly from China.slipped on Wednesday after hitting a fresh record high, as the digital currency saw profit-taking ahead of an expected Fed rate cut.

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