The time has come for policy to adjust," Fed Chair Jerome Powell said during his address at a gathering of central bankers in Jackson Hole, Wyoming, last month. "The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.
With August's core CPI coming in unexpectedly hotter than expected, it was looking likely a 50-basis-point cut wouldn't happen. That's because a larger rate cut makes borrowing cheaper, which tends to drive up spending and fuel price increases.
Many economists hope that the long-sought soft landing of getting inflation under control while avoiding a devastating recession could be near.
This rate cut is great news for middle-class families,
Collection
[
|
...
]