The Fed still appears to have room for further policy readjustment to avoid the labor market cooling beyond its comfort point without reigniting inflation, Wells Fargo said. "The Fed is expected to cut interest rates by 25 basis points, with risks favoring the FOMC to keep rates on hold. Recent signs of funding stress lead us to expect the Fed to discuss the current pace of quantitative tightening (QT) at its November meeting. QT is expected to end in Quarter 1, 2025. I wouldn't be surprised if there is another dissent in the interest rate statement. Going forward, the Fed is expected to cut rates by 25 basis points in December, another 125 basis points in 2025, and stay put throughout 2026.