The Latest Breaking News from the Federal Reserve

For more than two years, we've heard a steady drumbeat of news highlighting inflation and its impact on interest rates. The correlation seems clear, but the issue is actually more complex.

American consumers and home buyers, business people and political leaders have been waiting for months for what the Federal Reserve is poised to announce this week: That it’s cutting its key interest rate from a two-decade peak

More data suggesting the Federal Reserve was winning the battle against inflation provided an extra kick for equities after another rollercoaster week that started with big losses fuelled by US recession worries.

September S&P 500 E-Mini futures (ESU24) are up +0.23%, and September Nasdaq 100 E-Mini futures (NQU24) are up +0.08% this morning, while Treasury yields slumped after fresh U.S. economic data left investors uncertain about the size of an anticipated interest rate cut from the Federal Reserve next week.

September S&P 500 E-Mini futures (ESU24) are up +0.23%, and September Nasdaq 100 E-Mini futures (NQU24) are up +0.08% this morning, while Treasury yields slumped after fresh U.S. economic data left investors uncertain about the size of an anticipated interest rate cut from the Federal Reserve next week.

Asian markets mostly rose Friday and the yen sat around nine-month highs after another healthy day on Wall Street as investors gear up for an expected US interest rate cut next week.

The race is already on to predict the trajectory of future reductions to borrowing costs.

A Federal Reserve interest rate cut, expected next week, is one of many influences on mortgage rates, along with inflation, job growth and a shrinking or thriving economy.

The U.S. economy appears to have cleared the final hurdle for the Federal Reserve to reduce interest rates next week with Thursday's data showing wholesale prices on target with projections.