Fed Reserve: Interest Rates Could Fall in September

If that test is met, a reduction in our policy rate could be on the table as soon as the next meeting in September.

Federal Reserve Chair Jerome Powell on Wednesday, explaining the U.S. central bank could cut interest rates in September if economic data continues to indicate inflation moving toward the 2% target.

Why It Matters: Interest rates – which influence rates for other borrowing costs, such as credit cards and mortgages – remain at a 23-year high at about 5.3%. In the Federal Reserve meeting this week, Fed Chair Powell reported the central bank will consider lowering rates in the fall but will continue to consider economic data (such as inflation and the unemployment rate) stating, “The question will be whether the totality of the data, the evolving outlook and the balance of risks are consistent with rising confidence on inflation and maintaining a solid labor market.”

Read More: Powell says September rate cut ‘on the table’ if inflation data continues to cool (CNBC)