In September, a significant event will take place at the meeting of the Federal Reserve System: for the first time in four years, the interest rate will be lowered. The Fed is expected to cut rates by a quarter of a percentage point to 5-5.25%, ending the most aggressive fight against inflation since the 1980s. Investors are eagerly awaiting the Fed's announcement and are actively discussing the depth of this decline. Forecasts vary, but most believe that this will be the first step in a sequence of downgrades that may last until 2025 and 2026. Lowering interest rates will make loans more affordable for Americans and make it easier to finance businesses. During the meeting, the Fed will release new interest rate forecasts and Chairman Jerome Powell will hold a press conference. Former Kansas City Fed President Esther George suggests that the regulator may cut rates by 1.25-1.5 percentage points by the end of the year if the economy continues to slow down. Against the background of slowing inflation and the labor market, the Fed intends to support economic growth, avoiding further deterioration of the situation.
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