A Big, Not-So-Beautiful Inflation Picture
Conditions are in place for the Federal Reserve to cut rates this week. But the outlook is murky.
Pay increases for the lowest paid and inequality should worry the Trump administration.
Photographer: Elijah Nouvelage/BloombergTo get John Authers’ newsletter delivered directly to your inbox, sign up here.
The Federal Reserve is going to cut rates this week for the first time in 12 months. It will probably reduce the overnight fed funds rate by 0.25 percentage points, but there’s a chance it might still opt for a so-called “jumbo” cut of 0.5 percentage points. The increasingly ugly legal battle over whether Fed governor Lisa Cook should be allowed to vote in Wednesday’s meeting doesn’t affect this in the slightest, for all the potential long-term ramifications of replacing her.