While lower rates can goose the economy by making it cheaper to borrow and boosting prices for investments, they can also offer more fuel for inflation.
Federal Reserve
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IMF declares global fight against high inflation is ‘almost won’
In its latest assessment of the global economy, the International Monetary Fund predicted that worldwide inflation will cool from 6.7% last year to 5.8% this year and to 4.3% in 2025.
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U.S. retail sales ticked up last month in sign of ongoing consumer resilience
The Federal Reserve could provide an additional boost to consumers and the economy by lowering borrowing costs.
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Will the Federal Reserve cut interest rates fast enough to deliver a ‘soft landing’?
The rate cut expected Wednesday is likely to be just the first that should make borrowing more affordable now that the Fed has deemed high inflation to be all but defeated.
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Takeaways from Fed Chair Powell’s speech on interest rate cuts
Investors now expect the Fed to start cutting rates at its next meeting in September.
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Markets and households eagerly await Powell’s hints about Fed rate cut
Jerome Powell’s Jackson Hole speech will offer the clearest clue yet about what the Federal Reserve plans to do with interest rates at its September meeting.
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Strategists warn of Trump challenging Fed’s independence
Donald Trump’s challenges of Fed independence, both during his presidential term and more recently on the 2024 campaign trail, have broken from a long-standing norm that presidents refrain from influencing Fed policymakers’ decisions.
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Federal Reserve says September interest rate cut could be ‘on the table’ as inflation cools
The Fed is seeking to strike a delicate balance: It wants to keep rates high enough for long enough to quell inflation, but also wants to avoid keeping borrowing costs so high that it triggers a recession.
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Fed poised to keep rates steady. But rate cuts aren’t far off.
Officials are taking their time because they’ve been thwarted by the economy’s unexpected turns before.
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U.S. economy grew 2.8% in second quarter, a robust unexpected strengthening
Consumer spending, business investments, and new inventory drove the growth.