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Fed Sees a Strengthening Case For a Rate Cut

Fed Chair bolstered those expectations Wednesday

Federal Reserve officials last month saw the case for easier monetary policy gain momentum, minutes from the central bank’s June meeting showed.

“Several participants noted that a near-term cut in the target range for the federal funds rate could help cushion the effects of possible future adverse shocks to the economy,” the minutes said, which were released July 10. “Some participants also noted that the continued shortfall in inflation risked a softening of inflation expectations that could slow the sustained return of inflation to the committee’s 2 percent objective.”

The central bank kept interest rates unchanged at its previous meeting on June 18-19, however. The minutes showed that “some” participants thought at the time that more data needed to be gathered before moving forward with lower interest rates.

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