Fed expected to hold rates and signal September cut

Federal Reserve officials are likely to move closer to lowering interest rates from a two-decade high this week by signalling a potential rate cut in September, though they may stop short of providing details beyond that.

The US central bank’s Federal Open Market Committee will keep its benchmark rate in a range of 5.25% to 5.5%, a peak reached a year ago, at the conclusion of its two-day policy meeting Wednesday, according to economists surveyed by Bloomberg News. The decision will be announced via a post-meeting statement at 2pm in Washington. Fed Chair Jerome Powell will hold a press conference 30 minutes later.