Federal Reserve Poised to Cut Interest Rates in September: Minutes

The “vast majority” of Federal Reserve officials would likely support cutting interest rates in September if the data continue to favor looser monetary policy, according to minutes from the July meeting. The meeting summary of the policy-making Federal Open Market Committee (FOMC) highlighted that U.S. central bank officials are becoming increasingly confident that inflation is moving toward the institution’s target of 2 percent. With employment risks forming and inflation challenges decreasing, most participants agreed that easing policy restrictions would be appropriate next month. “Participants viewed the incoming data as enhancing their confidence that inflation was moving toward the committee’s objective,” the minutes said. “The vast majority observed that if the data continued to come in about as expected, it would likely be appropriate to ease policy at the next meeting.”...