A Fed Rate Cut Looks More Likely. The Question Is When and by How Much

  • Bets on a move as soon as July rise after weak jobs report
  • Some see Powell getting ahead of market with half-point cut

Federal Reserve Chairman Jerome Powell and his colleagues face three decisions when it comes to reducing interest rates: whether to do it, when to do it, and by how much.

Fed watchers say an unexpectedly weak reading on the U.S. jobs market in May makes it increasingly likely that the central bank will lower rates this year — in spite of President Donald Trump’s decision late Friday to call off his threatened tariffs on Mexico.

Rich Miller & Steve Matthews | Bloomberg

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