The Federal Reserve Board opened a two-day monetary policy meeting on October 28, and the market generally expects the second interest rate cut of the year. This expectation is mainly based on recent data showing weak performance in the U.S. job market.

Due to the federal government shutdown, the non-farm employment data for September was not released as scheduled. However, the latest national economic conditions survey report released by the Federal Reserve (commonly referred to as the "Beige Book") reveals a concerning trend: labor demand across various regions and industries in the U.S. is generally sluggish. This situation may prompt the Federal Reserve to take further interest rate cuts to support the economy.

Analysts generally believe that, given the ongoing weakness in the labor market, the Federal Reserve is likely to lower interest rates by 25 basis points. Meanwhile, the World Federation of Large Enterprises pointed out that the prolonged federal government shutdown is considered "a key point of concern," raising further worries about the economic outlook.

Another indicator worth noting is inflation expectations. The latest data shows that the American public's inflation expectations for the next year rose from 5.8% in September to 5.9%, far above the Federal Reserve's long-term target of 2%. This upward trend may add extra pressure to the Federal Reserve's decision-making.

The Federal Reserve's interest rate decision will be announced at 2:00 PM Eastern Time on the 29th (in the early morning of the 30th Beijing time). Market participants will closely watch this decision and its potential impact on the economy. With a weak labor market, rising inflation expectations, and factors such as government shutdowns intertwining, the challenges facing the U.S. economy seem to be intensifying, and the Federal Reserve's policy direction will significantly influence future economic trends.