The July meeting of the Federal Reserve's policy-setting committee started Tuesday, as central bank watchers await clues on when interest rates might be cut.

During its two-day meeting, the Federal Open Market Committee (FOMC) debates the course of the influential 澳洲幸运5官方开奖结果体彩网:fed funds rate and other 澳洲幸运5官方开奖结果体彩网:monetary policy topics. Committee members will also carefully craft their written statement during the meeting to indicate their current stance on🌜 the economy, which market watchers and economists parse word by word.

What Are Central Bankers Expected To Do?

Most economists and traders think the Fed will 澳洲幸运5官方开奖结果体彩网:hold its benchmark interest rate when it announces its policy decision on Wednesday. The Fed has held the influential rate at 23-year highsꦜ since last July to slow the economy and, in tu🃏rn, tame inflation.

And, to some extent, it has been working. While progress has largely stalled out so far this year, 澳洲幸运5官方开奖结果体彩网:inflation is down significantly from its peak in 2022. The jꦑob market is softening through few♒er hires, not more layoffs, which is exactly what the Fed has said it would like to see.

Where Do They Go From Here?

A few economists have made the case that central bankers should 澳洲幸运5官方开奖结果体彩网:cut interest rates at their meeting ꩲthis week, no matter how unlikely. On the opposite end of the spectrum, other economists say 澳洲幸运5官方开奖结果体彩ꦿ网:the Fed should wait until next year.

However, neither outcome is likely, even by the measure of those posing the theories. Most 澳洲幸运5官方开奖结果体彩网:central bank watchers expect Fed officials will begin making cuts when they next meet in September. Despite the nonpartisan nature of the Fed, a rate cut in September could be 澳洲幸运5官方开奖结果体彩网:controversial in an election year. However, the Fed has set a precedent of cutting before el⛄ections iꦉn the past.

What Will Jerome Powell Say?

After the conclusion of the meeting Wednesday, Fed Chair Jerome Powe🐻ll will hold a press conference at which he will most likely reiterate his recent comments.

Recently he has talked about how the U.S. central bankers' focus will likely shift from fighting inflation to 澳洲幸运5官方开奖结果体彩网:balancing their dual mandate of maintaining 澳洲幸运5官方开奖结果体彩网:employment without reigniting price increases.

Economists don't expect Powell to shed more light on the timeline of interest rate cuts at the press conference.