The federal reserve is scheduled to reduce prices amid inflation fears and the fears of the labor market

the Federal Reserve It is expected to announce the first interest rate this year on Wednesday, despite the signs of definitions that drive inflation to the top amid increasing concerns about the labor market.

Politics makers of the Federal Open Market Committee (FOMC) are expected to reduce the rate of federal funds by 25 basis points, the first since December 2024, which would reduce the target range to 4 % to 4.25 %.

Markets are priced in cutting, as the CME Fedwatch tool shows a 96 % chance to reduce 25-Basis and 4 % possibility to reduce the largest of 50-Basis.

The Federal Reserve Policy Manufacturers monitor economic data because they are considering controlling the monetary policy to support their double mandate to enhance the maximum employment as well as the stable prices in line with the Federal Reserve in the long term The target of inflation is 2 %. The September meeting comes because both of these goals are under pressure.

The inflation remained stubbornly in August, where the Federal Reserve weighs discounts in interest rates

The latest job reports from the work statistics office showed Weakening the creation of job opportunitiesWith the latest version showing only 22,000 jobs in August, with a slight review leaving July numbers of 79,000 and a downward review to June, it was found that the economy delivered 13,000 jobs in that month.

the Federal Federal Infederation ScalePersonal Consumption Expenditure Index (PCE), is going away from the goal of the Federal Reserve of 2 % since the spring of this spring. Since PCE inflation decreased to 2.2 % on an annual basis in April, when CORE PCE also decreased to 2.6 %, both numbers rose up with the main title of PCE to 2.6 % in July while the primary PCE enlargement rose to 2.9 %.

Other popular inflation scale, Consumer price index (CPI)In August increased to 2.9 % from the previous year, with inflation in the consumer price index increased by 3.1 %.

Decreased job growth in the United States during the month of March by 911K

With both sides of the double mandate, signs of weakness appear, the President of the Federal Reserve Jerome Powell He said that in such cases, politics will evaluate whether the labor market or inflation is out of the goal and focus on any element in a worse state.

This dynamic, along with the weakest labor market data, has led to expectations for lowering prices despite the high signs of inflation.

Reducing the first expected interest rate in the Federal Reserve in the year comes amid an intense pressure campaign by the Trump administration aimed at pushing the central bank to reduce prices in an attempt to increase the economy and reduce interest rates on the national debt.

The Americans have achieved record low in finding new jobs since the tracking began in 2013

Federal Reserve Policy Manufacturers discussed whether the president Donald Trump The customs tariff will ignite persistent inflation or will instead a single -time shift in the price level.

During a discussion episode on monetary policy earlier this summer, Powell was asked whether the Fed Bank had reduced interest rates more now if not. Definitions that stimulate inflation concerns.

“I think this is true,” Powell said. “In fact, we were suspended when we saw the size of the definitions, where, mainly, all inflation expectations for the United States increased materially as a result of the definitions.”

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Two FOMC members An opponent of the Federal Reserve Decision In July to keep interest rates fixed. The Conservatives of the Federal Reserve Bank, Michelle Bowman, Christopher, Wald, composed both opponents who call for 25-Basis discounts in this meeting, which represents the first time since 1993 that took off two of the policy makers that he fed in favor of price discounts.