The Fed Was Waiting on Data. It Found a New Mind-Set Instead.
The central bank is expected to give politicians the rate cut they want, but not because they want it.
Jerome Powell could have some good news this month for Donald Trump and Elizabeth Warren.
Photographer: Christophe Morin/Bloomberg
The Fed may be hoping that a deeper and faster cut to interest rates will support economic growth, but its biggest impact may be on the dollar.
Despite some hesitance on the part of Federal Reserve regional bank presidents recently about the wisdom of interest rate cuts later this month, and U.S. economic data that has been better this month, markets are increasingly of the view that the Fed will cut its target rate by 0.5% at its July meeting – not moving by quarter-point increments, and not waiting later in the year.