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Is the Fed going to lower rates?

Asked 3 hours ago

Answer

The Federal Reserve is signaling a likely sequence of rate cuts, with expectations for cuts to begin as early as September. While Chair Powell has not made a firm commitment, the Fed has penciled in two cuts for 2025, and ongoing economic data and labor market slack support a more accommodative policy stance.

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Likely sequence of Fed rate cuts coming, says David Rosenberg

CNBC · Just In
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Just In
  • Fed staff have lowered their inflation projections and expect rising unemployment. 29s
  • Significant slack in the labor market is anticipated to persist into 2027. 1m 7s
  • Rosenberg interprets Powell's remarks as signaling a sequence of rate cuts ahead. 2m 11s
  • Powell acknowledged inflation risks but suggested tariff effects are unlikely to boost wages. 2m 44s
  • Rosenberg concludes that tariffs will lead to negative real incomes, not future inflation. 3m 49s
Economy

References

Likely sequence of Fed rate cuts coming, says David Rosenberg
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CNBC
4 hours ago
Likely sequence of Fed rate cuts coming, says David Rosenberg

This was not just tipping his hat for a September 17th rate cut. I think this was actually a move towards suggesting that we're going to be in for a sequence of rate cuts ahead.

Hear what the Fed is worried about
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CNN
5 hours ago
Hear what the Fed is worried about

Powell said it might be time for a rate cut. Downside risks to employment are rising, and if those risks materialize, they can do so quickly in the form of sharply higher layoffs and rising unemployment.

Powell addressing Jackson Hole forum as pressure mounts for rate cut
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CBS America
1 day ago
Powell addressing Jackson Hole forum as pressure mounts for rate cut

Powell is very likely to want to leave his options open. He's probably not going to rule out a quarter point cut, but it may be too early for him to forcefully signal that an easing is definitely on the way.

U.S. reaches EU trade agreement framework
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CBS News
1 day ago
U.S. reaches EU trade agreement framework

The Federal Reserve has penciled in two rate cuts in 2025, and that has not happened yet. We've been holding rates steady this year.

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