The Federal Reserve is anticipated to cut interest rates next week, despite the U.S. inflation rate holding steady at 3% in September, above the Fed's 2% target. This move reflects growing concerns over a weakening labor market and the economic impact of sustained high interest rates. Federal Reserve Chair Jerome Powell and most voting members are now prioritizing employment risks over inflation, as private-sector job growth has nearly stalled. The recent government shutdown has delayed the release of key economic data, but existing indicators and business communications suggest that core economic trends remain unchanged. Analysts are divided on the possibility of another rate cut in December, with future decisions likely hinging on forthcoming economic data.