The Federal Open Market Committee meeting featuring the release of a new Summary of Economic Projections should give the market a better clue as to whether the expected rate cut is part of a mid-cycle adjustment or the second step in an easing cycle.
The producer price index grew 0.1% in August, while the core rate — which excludes food and energy — rose 0.3% in the month, the Labor Department reported Wednesday.
President Donald Trump urged the Federal Reserve to lower interest rates to a level typically reserved for recessions or periods of persistently weak growth, suggesting that such a setting could allow the government to restructure Treasury debt at a lower cost.
The Federal Reserve’s pre-meeting blackout period started, and although we won’t hear from Fed officials this week, several economic indicators are slated, including inflation data on Wednesday and Thursday and reads of the consumer sector on Friday.
Federal Reserve Chairman Jerome Powell said the most likely outlook for the U.S. and world economy is continued moderate growth, but the central bank was monitoring “significant risks.”
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