Former New York Fed executive: The Fed is moving closer to a rate cut, and the FOMC meeting may prepare for a policy shift in September

The Federal Reserve is expected to create conditions for lower borrowing costs this week as U.S. inflation takes a favorable turn and the labor market continues to be weak. The two-day meeting of the Federal Open Market Committee (FOMC) will end in the early hours of Thursday morning, when the committee will once again stabilize the benchmark interest rate at a 23-year high of 5.25-5.5%. While the interest rate decision itself may seem mundane, the meeting will be an important platform to further prepare for a policy shift as early as September. Brian Sack, former head of market affairs at the New York Fed, said: "The Fed is moving closer to rate cuts, and this week's communication should reflect this." Fed officials have been able to more directly accept the idea of ​​rate cuts because there is clearer evidence that inflation is finally under control after many rounds of repetition. (Jinshi)