- Powell said “the time has come” signaling that rate cuts could soon lower borrowing costs for American consumers and businesses. This will also lower mortgage rate and boost the housing market.
- The weakening in the labor market with slowdown in hiring and the increasing unemployment rate. Combine with progress made in lowering inflation signaled the time has come to lower interest rate. The concern is keeping rates too high for too long with throttling growth that could plunge the economy into recession.
- The Federal Reserve is increasingly confident that inflation will continue to cool and reaching the 2% annual rate target.
- The size of the rate cut will significantly depend on the upcoming employment data to be released on Sept. 6th.
Leave a Reply