WASHINGTON (AP) — With the end of their two-year fight against inflation in sight, Federal Reserve officials are likely Wednesday to set the stage for the...
, Federal Reserve officials are likely Wednesday to set the stage for the first cut to their key interest rate in four years, a major shift in policy that could eventually lower borrowing costs for U.S. consumers and businesses.to the Fed's 2% target for the past several months. And the job market has cooled, with the unemployment rate rising about a half-point this year to 4.1%.
Instead, Powell will have more opportunities in the coming months to illustrate how the Fed is thinking about inflation and interest rates, particularly in his speech in late August at the annual Fed conference in Jackson Hole, Wyoming. As a result, he may not provide much of a hint Wednesday regarding how quickly the Fed will cut rates after it starts doing so.
Rental inflation was a leading example of what economists call “catch-up” inflation, in which prices were still rising this year because of distortions from the pandemic economy. Many Americans sought more living space or moved out on their own during COVID, pushing up the cost of rents and homes. Powell and other Fed officials have also worried that strong job growth and rapidly rising paychecks would potentially fuel inflation, as some companies would likely raise prices to offset the higher labor costs.
More than half of child-free Americans under 50 who don't think they'll ever have kids say they just don't want them
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