Former New York Fed Executive: The Fed is moving closer to rate cuts, and the FOMC meeting may be preparing for a policy shift in September.

Odaily Planet Daily News According to the positive change in US inflation and the continued weakness in the labor market, the Fed is expected to create conditions for dropping borrowing costs this week. The two-day meeting of the Federal Open Market Committee (FOMC) will end early Thursday morning, when the committee will once again stabilize the Benchmark Interest Rate at a 23-year high of 5.25-5.5%. Although the decision on the Interest Rate itself seems unremarkable, this meeting will serve as an important platform to prepare for a policy shift as early as September. Brian Sack, former head of market operations at the New York Fed, said, ‘The Fed is moving closer to an interest rate cut, and this week’s communication should reflect that.’ Fed officials are more able to directly accept the idea of rate cuts because there is clearer evidence that after multiple repetitions, inflation has finally been brought under control. (Golden Finance)