U.S. Fed's Jerome Powell Indicates September Rate Cut As U.S. Inflation Cools

Federal Reserve Chair Jerome Powell announced that interest rates might be reduced as early as September if the U.S. economy continues to meet expectations. This potential rate cut marks a significant shift as the Fed nears the end of its prolonged battle against inflation, coinciding with the upcoming presidential election campaign. The Federal Reserve concluded its latest two-day policy meeting by maintaining the benchmark interest rate in the 5.25%-5.50% range, a level unchanged for the past year. However, the Fed's statement took a notable turn by softening its language on inflation, now indicating that the risks to employment are on par with the risks of rising prices. This more neutral stance suggests a willingness to lower rates after over two years of tightening credit.