Fed Prepares for September Cut as Powell Shifts Focus to Jobs

For more than two years, inflation has eclipsed everything else at the Federal Reserve. In a shift eagerly awaited by global markets, that’s poised to change.

US central bankers are ready to cut interest rates in September amid growing confidence that price stability is within sight – while risks to the labor market have grown. They’ve laid the groundwork for the coming move in speeches over recent weeks, and Chair Jerome Powell will likely flag it more explicitly after a policy meeting on July 30-31.

It’s not quite a done deal. Fed officials still want to see monthly ...