Federal Reserve officials are likely to move closer to lowering interest rates from a two-decade high this week by signaling a potential rate cut in September, though they may stop short of providing details beyond that.
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Goldman Sachs Group Inc. Chief Executive Officer David Solomon said one or two Federal Reserve rate cuts later this year are looking increasingly likely, after predicting just two months ago there would be no rate reductions in 2024.
Most Federal Reserve officials will likely agree on one thing when they convene for their July 30-31 meeting: downside risks to the US central bank’s full employment mandate are about balanced with upside risks to inflation.
The Federal Reserve’s preferred measure of underlying US inflation rose at a tame pace in June and consumer spending remained healthy, encouraging signs for officials looking to cool inflation without breaking the economy.
Having boomed its way through 2023, the US economy is coming back to earth.
Bond traders are reassessing so-called Trump trades as Vice President Kamala Harris gathers support among Democrats, weighing the political shakeup against upcoming fresh economic data and the path of US interest rates ahead.
Stocks rebounded after their worst week since April as investors looked beyond Joe Biden ending his reelection campaign to focus on the start of the tech earnings season.
For more than two years, inflation has eclipsed everything else at the Federal Reserve.
A rally in big tech propped up stocks, while evidence of labor-market cooling bolstered the outlook for rate cuts.
International purchases of US homes hit a record low as foreign buyers balked at the dollar’s strength and a dearth of available properties.