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Federal Reserve Signals Potential Rate Cut in September

Fed Chair Jerome Powell cites cooling inflation and a balanced labor market as key factors for possible policy change.

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Jerome Powell testifies before a Senate Banking, Housing and Urban Affairs Committee hearing, on July 9, 2024.
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Overview

  • Fed maintains current interest rates at a 23-year high of 5.3%.
  • A rate cut could reduce borrowing costs for consumers and businesses.
  • Chile's central bank also pauses its rate cuts amid rising inflation pressures.
  • Financial markets largely expect the Fed to begin rate cuts in September.
  • Powell emphasizes that future decisions will depend on incoming economic data.