If you watch the economy—or just feel the price of groceries and gas inch up every month—you’ve probably wondered whether the Federal Reserve might finally cut interest rates. For much of the past year, markets and economists have wrestled with conflicting signals about inflation and the U.S. economy. Some early forecasts pointed to a possible rate cut as soon as June, but recent data have clouded the picture. With inflation readings stubbornly above the Fed’s 2% target and global risks pushing up energy prices, the question has shifted from if the Fed will cut rates to when it might do so. Here’s what you need to know.
