Overview

• The Federal Reserve has signaled a pivot to easier policy, with the possibility of interest rate cuts on the horizon.
• Despite inflation falling faster than expected, Fed officials maintain that progress is not yet sufficient to warrant immediate rate cuts.
• Even hawkish Fed policymakers are beginning to see the possibility of rate cuts if inflation continues to fall.
• The Fed's policy meeting next week is expected to provide further clarity on the timing and extent of potential rate cuts.
• Data indicates that the Fed may have achieved a 'soft landing' for the economy, with low unemployment and inflation rates.