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)