A recent Federal Open Market Committee (FOMC) meeting held by the US Federal Reserve indicated that interest rates would remain at their highest level in over two decades. However, policymakers signaled a potential shift towards lowering borrowing costs due to easing inflation and a cooling labor market.
The upcoming Consumer Price Index (CPI) release for August is anticipated to show further disinflation, potentially paving the way for a cut in interest rates. Market discussions are now focused on the magnitude of the expected rate cut rather than its likelihood.
