FOMC Statement Suggests Rate Cut in September, WSJ Reporter Says

IconCryptoNewsTerminal Staff31 Jul, 2024

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FOMC Statement Suggests Rate Cut in September, WSJ Reporter Says

The Federal Open Market Committee (FOMC) statement released this week did not explicitly signal a rate cut in September, but there were a couple of notable wording changes that suggest that policymakers are considering such a move. One change is the return of the word "symmetric" to the dual mandate language. This change suggests that the Fed is concerned about inflation expectations moving too low. The other change is the shift from "elevated" to "somewhat elevated" to describe inflation. This change suggests that the Fed is acknowledging that inflation may be starting to moderate. Taken together, these changes suggest that the Fed is open to cutting rates if inflation continues to moderate. However, it is important to note that the Fed did not explicitly commit to a rate cut in September. The ultimate decision will depend on the economic data that is released between now and then.

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