The Federal Reserve (Fed) is expected to keep the federal funds rate at a 23-year high of 5.25%-5.50% for the 8th consecutive meeting in July 2024.
The majority of market expectations are that policymakers will likely signal an interest rate cut in September amid signs of easing inflation and a strong but slowing labor market.
In June, the annual inflation figure fell to 3%, the lowest level since June 2023, while the core rate hit a three-year low of 3.3%.
The annual PCE index also decreased to 2.5% from 2.6%. The core PCE rate, which is the central bank's preferred gauge of inflation, remained at 2.6%, well below its level in 2022.
Additionally, the unemployment rate is at its highest level since 2021 at 4.1%, average wages are slowing and layoff rates are rising.
