Economists Anticipate Fed's Shift from Rate Hikes to Cuts

The Federal Reserve is expected to maintain current interest rates at its July 30-31 meeting, but economists anticipate signals for potential rate cuts starting in September.

With inflation cooling and the labor market showing signs of moderation, the Fed is likely to consider easing its monetary policy. While most experts predict a 0.25 percentage point cut in September, followed by possible additional cuts later in the year, the exact timing and extent of rate reductions will depend on ongoing economic trends.

The Fed’s decision-making process balances its dual mandate of price stability and maximum employment.