The US Federal Reserve is widely expected to start cutting interest rates in the coming months, as inflation edges closer to its long-run target of 2%. While the US central bank is almost certain to announce it is holding its key lending rate steady at its next rate decision on Wednesday, analysts think it could also drop some more hints that cuts are coming. In economic forecasts published alongside the last Fed decision, policymakers indicated that they expect as many as three quarter percentage-point rate cuts this year — although they did not indicate when they might begin. During a press conference after the rate decision was announced, Fed chair Jerome Powell said policymakers had even discussed when it would be “appropriate” for the Fed to begin cutting interest rates, without providing any additional details.
The US Federal Reserve is expected to start cutting interest rates in the coming months as inflation approaches its target. While the central bank is likely to keep rates steady at its next decision, analysts believe it could hint at future cuts.
In previous forecasts, policymakers indicated the possibility of three rate cuts this year. Fed chair Jerome Powell mentioned discussions on when it would be appropriate to begin cutting rates.
US Federal Reserve Interest Rates Inflation Rate Cuts Jerome Powell