Navigating Monetary Policy: The Fed's Delicate Balance

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This chapter examines the Federal Reserve's potential shift in monetary policy in light of recent economic data showing lower inflation and job market changes. It discusses the implications of sustained high interest rates on American households, the labor market dynamics post-pandemic, and the Fed's cautious optimism regarding future interest rate cuts.

This week, the Federal Reserve is expected to cut interest rates for the first time in over four years. And there’s debate over how big the cut will be and how soon it will impact the economy.

Bloomberg’s Kate Davidson joins host David Gura to discuss this turning point for the economy, and what else Fed policymakers have in store for the future.

Further listening: What a September Cut Could Mean for the Economy and the Election

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