Inflation Cooled in August, Keeping the Fed Poised to Cut Rates

Inflation continued to recede in August, paving the way for the Federal Reserve to lower interest rates for the first time since early 2020 at their meeting next week.

But signs of stubbornness lingered under the surface, which caused investors to ramp up their bets that central bankers will lower borrowing costs by a quarter-point from their current 5.33 percent, not the larger half-point that some had previously seen as possible.