U.S. inflation rose 2.9% in July last month, versus a year ago, which fell below expectations in a result that likely paves the way for the Federal Reserve to finally begin cutting interest rates next month.
Read More U.S. Inflation Hits 2.9% In July, Opening Possibility For Fed To Start Cutting Rates
If the U.S. Federal Reserve does not start cutting interest rates relatively soon, U.S. consumers could become dispirited.
Read More US consumers could become discouraged without rate cuts, Bank of America CEO says
A sharp slowdown in the U.S. job market that touched off days of global stock-market turmoil also fueled speculation the Federal Reserve may not wait until its next scheduled meeting.
Read More The Fed has cut rates amid stock swoons before. Not this time
U.S. job growth slowed more than expected in July, with the unemployment rate increasing 4.3%, leading to fears that the labor market is faltering and the economy is heading for a possible recession.
Read More Report: U.S. Economy Added 114K Jobs In July, Unemployment Increases To 4.3%
While maintaining interest rates at their highest point in over 20 years on Wednesday, the Federal Reserve made a suggestion that lower borrowing costs may soon be implemented by policymakers due to slight recent improvements in inflation.
Read More Federal Reserve Holds Interest Rates Steady For 2 Decades, Leaves Door Open For Cuts
The Federal Reserve is expected to open the door to interest rate cuts as soon as September by acknowledging inflation has edged nearer to the U.S. central bank’s 2% target.
Read More Fed likely to hold rates steady one last time as inflation fight finale unfolds