Central Banks
Fed Prepares for September Cut as Powell Shifts Focus to Jobs
- Officials increasingly confident price stability is in sight
- Fed chief Powell focused on sticking soft landing for economy
Jerome Powell
Photographer: Al Drago/BloombergThis article is for subscribers only.
For more than two years, inflation has eclipsed everything else at the Federal Reserve. In a shift eagerly awaited by global markets, that’s poised to change.
US central bankers are ready to cut interest rates in September amid growing confidence that price stability is within sight – while risks to the labor market have grown. They’ve laid the groundwork for the coming move in speeches over recent weeks, and Chair Jerome Powell will likely flag it more explicitly after a policy meeting on July 30-31.