Rachel Reeves faces Budget scrutiny as Fed rate cut looms over volatile markets
A busy day lies ahead for Chancellor Rachel Reeves as she prepares to address MPs and the public on Budget concerns. The Treasury Select Committee will question her later today, while financial markets watch closely for the Federal Reserve’s evening interest rate decision.
UK stocks have already felt the pressure, with the FTSE 100 dipping slightly on Thursday amid economic uncertainty.
Reeves will appear before the Treasury Select Committee this morning. MPs are likely to press her on recent Budget leaks, which she has firmly denied approving. When questioned by Conservative MP Mel Stride in Parliament, she stated she had neither authorised nor permitted any unauthorised disclosures.
After 10am, she will deliver a speech to address lingering questions about the Budget. The timing ensures she speaks directly after the committee hearing, reinforcing her position on the matter.
Across the Atlantic, the US Federal Reserve is set to announce its interest rate decision at 7pm UK time. Markets anticipate a 25-basis-point cut, a move that could influence global financial sentiment. A press conference will follow the announcement.
The Fed’s decision comes just a week before the Bank of England’s own rate call. Governor Andrew Bailey will hold the deciding vote, adding further weight to next week’s meeting.
The FTSE 100 has already reflected the current volatility. Poor economic data and a crowded news cycle have pushed the index lower, leaving investors cautious ahead of tonight’s Fed announcement.
Reeves’ statements today will aim to clarify the Budget situation before MPs and the public. Meanwhile, the Fed’s rate cut—if confirmed—could set the tone for the Bank of England’s upcoming decision. Both events will shape stock market today in the days ahead.
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