Federal Reserve Anticipates Rate Cut to Combat Inflation

Recent statements from former Cleveland Fed President Loretta Mester and current Chair Jerome Powell suggest a shift towards potential rate cuts by the Federal Reserve as inflation slows. Mester indicates a willingness to reduce rates if inflation continues to cool, aiming for sustainable 2% inflation. Powell echoes confidence in inflation slowing and hints at rate cuts before hitting the 2% target, with expectations of cuts in September, November, and December. Market analysts, like BlackRock's Rick Rieder, also anticipate Fed rate cuts in September amidst lower inflation and moderated growth.