Fed Faces Crucial Rate Decision Amid Inflation Concerns and Global Easing

The Federal Reserve is under pressure to significantly lower interest rates at its upcoming meeting. Critics argue that the Fed has been both too slow in responding to inflation and too hesitant in cutting rates as inflation eases. While the European Central Bank has already cut rates twice, the Fed has maintained its rate since July 2022, leading to speculation of a larger cut to catch up. Some analysts believe the Fed needs to act aggressively to avoid missing the opportunity to support a cooling economy. However, recent data on inflation and the labor market doesn`t provide strong justification for a significant rate cut just yet.