Cooler inflation reports all but assure rate cut at next Fed meeting

Two back-to-back inflation reports showing annual price growth slowing have made it very likely that the Federal Reserve will finally cut interest rates at its next meeting in September.

Inflation, as tracked by the consumer price index, fell below 3% for the first time since right after President Joe Biden and Vice President Kamala Harris were sworn into office. Annual inflation increased by just 2.9% in July, and while it remains above the Fed’s 2% target, the drop is still good evidence that the higher interest rates have worked to slow inflation.