The Latest Breaking News from the Federal Reserve

“We doubt that U.S. tariffs will significantly affect inflation in the rest of the world, but if anything, the effect could be mildly disinflationary.”

Editor’s Note: The future prices of benchmark tracking ETFs, the lede, and the latest economic releases were updated in the story

Mortgage rates have fallen to their lowest level in 10 months, a development that provides fresh ammunition to President Donald Trump to intensify calls for more aggressive interest rate cuts from the Federal Reserve.

The FTSE 100 index closed up 12.01 points at 9,177.24.

September S&P 500 E-Mini futures (ESU25) are down -0.02%, and September Nasdaq 100 E-Mini futures (NQU25) are down -0.08% this morning, taking a breather after recent gains, while investors look ahead to crucial U.S. producer inflation data for insight into how aggressively the Federal Reserve may cut interest rates.

Editor’s Note: The future prices of benchmark tracking ETFs and the latest economic releases were updated in the story.

Homebuilder stocks are rallying Wednesday afternoon, fueled by growing investor optimism that the Federal Reserve is poised to cut interest rates as soon as next month.

Global equities are crushing Wall Street in 2025, posting their strongest outperformance since the Great Recession, as trade deals, a sliding dollar and looser monetary policy overseas help fuel a historic reversal.

Increased hopes for a US rate cut propel markets to fresh highs

The July CPI report has put the Federal Reserve in a “predicament” regarding a September rate cut, as stubbornly high core inflation conflicts with a weakening labor market, fueling fears of “stagflation-lite.”

Shares have advanced in Asia after the U.S. stock market rallied to records when data showed inflation across the United States improved slightly last month