Federal Reserve's Interest Rate Decisions

The Federal Reserve is expected to cut interest rates due to recent economic indicators suggesting progress in managing inflation. Despite a recent rise in the Producer Price Index (PPI) primarily driven by food prices, the overall perception is that inflation is stabilizing after peaking at over 9% in June 2021. Data regarding rental costs indicate that the housing market may be cooling, with a notable decrease in the growth of owner's equivalent rent, which is a critical component of inflation calculations. Fed policymakers appear optimistic that, despite inflation's recent stall, the labor market remains steady enough to support a rate cut.