The Globe and Mail reports in its Thursday, Sept. 18, edition that the U.S. Federal Reserve is cutting interest rates while many other central banks are winding down their easing cycles. A Reuters dispatch to The Globe reports that this marks a resumption of its easing after a pause last December. As the Fed swims against the global trend, investors may face choppy waters ahead. Since the euro's launch in 1999, there have been four major global easing cycles, including the current one. In the previous cycles, the Fed either moved first or was among the most aggressive rate cutters. However, last year, it lagged behind its peers due to persistent inflation and strong growth. The Fed is now behind other central banks like the European Central Bank and BOC, which have cut rates by 200 and 250 basis points. Rate futures indicate around 150 basis points of Fed cuts by the end of next year, significantly more than the 40 to 60 basis points anticipated from the Bank of England, BOC and Reserve Banks of Australia and New Zealand. The ECB and Swiss National Bank appear done with rate hikes, while the Bank of Japan is slowly raising rates, creating potential challenges beyond the U.S. The policy divergence is impacting FX markets, with the dollar weakening again after a summer of stability.