A Federal Reserve interest-rate cut on Wednesday is looking all but certain. How stocks might react as the central bank loosens policy, however, remains very much up in the air.

That the Fed will cut rates at its meeting next week is all but settled. But how much is shaping up to be a close call.

The FOMC is getting ready to cut interest rates. It could mean lower APYs on high-yield savings accounts and CDs. Mortgage borroers could save.

As traders and investors around Wall Street prepare themselves for what is expected to be the start of the Federal Reserve's rate-cutting cycle next week, Goldman Sachs believes the "why" behind the central bank's action is what matters.

Traders have increased bets that the US Federal Reserve will cut interest rates by half a percentage point next week in a move that could stimulate growth in the world economy. US stock markets gained at the opening bell as money markets indicated there is more than a 50pc chance that policymakers will announce a jumbo sized rate cut.