The Federal Reserve is opening its closely watched two‑day policy meeting on Sept. 15 as officials confront elevated inflation, rising interest rates, and the conflict in Iran.
Much has changed—both in inflation and in the labor market—since the Fed last met in July.
The headline annual consumer inflation rate has slowed to 3.4 percent. The 12-month core inflation rate, which strips out volatile energy and food prices, eased to 2.4 percent, its lowest level since March 2021.
Job growth roared back last month, with the economy adding 162,000 new jobs. The unemployment rate remains at 4.1 percent, and workforce participation has bounced back.
Because of upside inflation risks and economic conditions remaining in good shape, investors have fully priced in a quarter-point interest rate hike this month, which would raise the benchmark federal funds rate to a new target range of 3.75 percent to 4 percent….