Federal Reserve Holds Steady, Signals September Rate Cut

The Federal Reserve is inching closer to cutting interest rates, signaling a rate reduction in September if inflation continues trending downward and the labor market remains solid. Fed officials left the policy rate unchanged at a 23-year high of 5.5 percent following the two-day policy meeting that concluded on July 31. While no decisions have been made about future meetings, Powell signaled that a rate cut could be on the table as early as the September policy meeting. “The broad sense of the committee is that the economy is moving closer to the point at which it will be appropriate to reduce our policy rate,” Powell told reporters at the post-meeting press conference....