Fed Unofficial Mouthpiece: September Rate Cut 'All but Certain' After July CPI Data
CryptoNewsTerminal Staff14 Aug, 2024
Fed Unofficial Mouthpiece: September Rate Cut 'All but Certain' After July CPI Data
The Federal Reserve (Fed) is all but certain to cut interest rates by at least 25 basis points in September, according to Nick Timiraos, the Wall Street Journal reporter often referred to as the Fed's unofficial mouthpiece. Timiraos said the July Consumer Price Index (CPI) data, which showed inflation cooling slightly, "makes a September rate cut by the Federal Reserve all but certain." However, it is still unclear whether the Fed will cut rates by 25 basis points or 50 basis points. A 50-basis-point cut would require a much weaker-than-expected jobs report. The key question for the Federal Open Market Committee (FOMC) in September will be how much further easing is likely for the rest of this year. The odds of a third rate reduction this year will increase if inflation continues to moderate.
