Former New York Fed executive: The Fed is moving closer to a rate cut, and the FOMC meeting may prepare for a policy shift in September

Odaily News The Federal Reserve is expected to create conditions for lower borrowing costs this week as U.S. inflation takes a favorable turn and the labor market continues to be weak. The two-day meeting of the Federal Open Market Committee (FOMC) will end in the early hours of Thursday morning, when the committee will once again stabilize the benchmark interest rate at a 23-year high of 5.25-5.5%. While the interest rate decision itself may seem unremarkable, the meeting will serve as an important platform to further prepare for a policy shift as early as September. "The Fed is moving closer to a rate cut, and this week's communication should reflect that," said Brian Sack, former director of market affairs at the New York Fed. Fed officials have been able to more directly accept the idea of a rate cut because there is clearer evidence that inflation is finally under control after many repetitions. (Jinshi)