Fed, FOMC meeting
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The dollar eased across the board on Monday as investors braced for the Federal Reserve to resume interest rate cuts at this week's meeting and President Donald Trump renewed calls for faster monetary policy easing.
But Jay Powell could end up caught in the middle — with the Fed chair stuck between governors advocating for bigger cuts and regional Fed presidents who would prefer to keep borrowing costs on hold. “They’re probably going to get dissents in both directions,
Some of his colleagues have signaled they want a larger rate cut because of the weaker labor market. Others may opt for no change in rates because of recent gnarly inflation readings. It’s possible both sides will formally dissent.
Strategists from Morgan Stanley, JPMorgan Chase & Co. and Oppenheimer Asset Management warned that a more cautious tone may replace the bullish mood as investors focus instead on a potential economic slowdown.
President Trump has called for a “big cut” to interest rates ahead of the Federal Reserve’s meeting this week, despite inflation rising and economists predicting only a
Inflation ticked up in August in a troubling sign for consumers, but not enough to prevent a Federal Reserve rate cut next week.
Markets have fully priced in a September cut and now anticipate three reductions this year, compared to two just weeks ago.
A record downward revision to annual US job growth, paired with no surprises in the latest inflation data, sealed the deal for the Federal Reserve to cut interest rates next week.