Federal Reserve Considers Immediate Rate Cut Amid Job Market Concerns

Federal Reserve officials were leaning towards an interest rate cut at the upcoming September policy meeting, with some even ready for an immediate reduction. Concerns over rising joblessness and a cooling inflation landscape prompted discussions around easing monetary policy to support economic activity.

Federal Reserve officials leaned strongly toward an interest rate cut at their September policy meeting, with several considering an immediate reduction, as revealed in minutes from the July 30-31 gathering.

Although rates were left unchanged last month, the door remains open for a potential cut in the Sept. 17-18 session. Financial markets anticipated this move might begin a series of adjustments by year-end amid sluggish inflation and job market concerns.

During the July meeting, a substantial number of policymakers supported easing policies should data align with expectations; however, some feared premature adjustments could reignite inflation. The debate has intensified with the jobless rate rising to 4.3%, adding urgency for potential half-percentage-point rate cuts.

Fed Chair Jerome Powell hinted at rate reductions in a post-meeting press conference, and further insights are expected during the Kansas City Fed's annual research conference in Jackson Hole, Wyoming.

Financial markets showed modest reactions, with stocks climbing and bond yields dropping on the confirmation of the expected policy outlook.

(With inputs from agencies.)