The Federal Reserve is poised to resume cutting interest rates for the first time in nine months as it grapples with a slowing labor market, stubborn inflation and an unprecedented push by President Donald Trump for lower borrowing costs.
A cut this week, however, won’t necessarily set the Fed on a smooth glide path to lower rates.
The Marriner S. Eccles Federal Reserve building in Washington, DC, on Thursday, July 24, 2025.
Photographer: Alex Wroblewski/Bloomberg
A string of disappointing data is fanning worries the labor market could tip into a more serious slowdown, and drag with it consumer spending and economic growth. But inflation is