This is the economic U-turn we’ve been waiting for. The Federal Reserve is expected to begin lowering interest rates Wednesday.
It’s been a long time coming.
After inflation peaked at 9.1% in June 2022, the Fed worked to tame consumer prices with 11 interest rate hikes over the ensuing months. Rates have remained unchanged since August 2023.
With inflation at 2.5% in August — tantalizingly close to the 2% target — Fed officials are signaling that they feel the time is finally right to steer interest rates lower.
Read more: Fed predictions for 2024: What experts say about the possibility of a rate cut
How monetary policy works
The Fed controls one interest rate: the federal funds rate, the short-term rate banks use to borrow from each other. The target range for the federal funds rate remains at 5.25-5.50%.
Fed interest rate decisions filter through the financial world, impacting…
