Fed Seen Signaling September Rate Cut at Next Week’s Meeting
- Economists divided on how Fed messages move at July gathering
- Most economists say US election won’t affect rate-cut timing
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Fed Seen Signaling September Rate Cut at Next Week’s Meeting
- Economists divided on how Fed messages move at July gathering
- Most economists say US election won’t affect rate-cut timing
Vehicles pass in front of the Marriner S. Eccles Federal Reserve building in Washington, DC.
Photographer: Al Drago/BloombergThe Federal Reserve is likely to signal next week its plans to cut interest rates in September, according to economists surveyed by Bloomberg News, a move they say will kick off reductions each quarter through 2025.
Nearly three-quarters of respondents say the US central bank will use the July 30-31 gathering to set the stage for a quarter-point cut at the following meeting in September. They’re divided, however, about how policymakers will do so.
Half of respondents see officials signaling the upcoming move with both the policy statement and Fed Chair Jerome Powell’s press conference 30 minutes later, but others anticipate the Fed to use one method or the other. All respondents expect the Fed to keep rates unchanged at a more than two-decade high at next week’s meeting.
Fed Seen Signaling September Rate Cut at Next Week's Meeting
Most economists see Fed using statement and press conference to indicate change