Opinion: Fed rate cut not expected to reach 50 bps in September
Nick Timiraos, a well-known financial reporter known as the ‘New Fed News Service’, wrote that August's inflation data paved the way for the Federal Reserve to gradually lower interest rates next week, but is not expected to see a sharp 50 basis points of rate cuts. Firmer housing inflation led to a slightly higher-than-expected rise in core prices in August, which could make it harder for Fed officials to push for a sharper 50-basis-point rate cut at next week's Fed meeting. However, some officials have not completely ruled out the possibility of a sharper rate cut. Meanwhile, while easing inflation has provided respite for burdened households, the labour market is also cooling, with hiring and wage growth slowing and the average length of unemployment rising as it becomes more difficult to find a job.
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