With greater confidence that inflation is moving sustainably lower and a willingness to preemptively support its employment goals, the...

The Fed has signaled that it will cut the Federal Funds target range 25bp (to 5.00-5.25%) on September 18 and initiate a monetary easing program. While nascent growth concerns could dovetail with excessive labor market cooling to motivate a larger initial reduction, more assertive forward guidance appears likely instead.

At its July 31 meeting, the Fed sought to communicate a more balanced assessment of risks to include labor market deceleration. Powell signaled an imminent policy easing program.