This week’s meeting of Fed officials will be one of the most consequential in a while, even if the central bankers aren’t likely to cut interest rates this time and instead look ahead to September.

While Federal Reserve officials aren’t likely to change interest rates in the coming week, their meeting will nonetheless be one of the most consequential in a while. At each of their four meetings this year, interest-rate cuts have been a question for later. This time, though, inflation and labor-market developments should allow officials to signal a cut is very possible at their next meeting, in September. As a result, the coming week’s meeting, which wraps up Wednesday, could resolve the trade-off Chair Jerome Powell has been weighing between the risks of cutting rates too soon and waiting too long, in favor of acting sooner.
Source: WSJ.com: World News