Federal Reserve Chair Jerome Powell has mentioned two factors that could lead to interest rate cuts. One was inflation declining to near the Fed’s 2% goal. The other was a weakening job market.
Both boxes have now been checked off. The Fed’s favorite inflation metric — the personal consumption expenditures (PCE) price index — fell to 2.5% in June. July jobs numbers were weaker than expected.
The probability of a near-term interest rate cut has risen. But will the stock market soar if the Fed cuts rates in September? Here’s what history shows.
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