Inflation Data Shifts Fed Focus from 'If' to 'How Much' on Rate Cuts The latest inflation data has shifted the focus from whether the Federal Reserve will cut interest rates to how much they will cut. With CPI falling below 3%, the lowest since spring 2021, expectations for a September rate cut have solidified. However, the magnitude of the cut remains uncertain, with market bets on a 50 basis point decrease declining. The Fed will consider additional economic indicators, including the core PCE price index, August jobs report, and another CPI report, before its September meeting. While inflation’s decline gives the Fed more flexibility, balancing concerns about the labor market and recession risks will influence the aggressiveness of their easing strategy. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts Pandemic Savings Depleted: Economic Uncertainty Looms as American Debt Rises READ MORE Dollar Nears Monthly Peak Amid Rising US Yields and Anticipation of Rate Cuts READ MORE Powell's Pivot: Fed Likely to Adopt Tougher Stance as Inflation Climbs READ MORE Oil Prices Recover Slightly Amid OPEC+ Supply Concerns READ MORE Global Air Travel in Turmoil as CrowdStrike Outage Continues READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment