Powell Has Backing for 2025 Rate Cuts and Then Things Get Cloudy

The Federal Reserve is ready to cut interest rates again this month, because right now a weakening job market outweighs inflation fears. But that balance may not hold for very long.

There’s a sizable Fed contingent calling for caution – pointing to prices that have been running above-target for years and still face upward pressures. Even some policymakers who are open to two more rate cuts this year aren’t confident projecting that trajectory any further ahead.