Fed to Hold Rates as Political Storm Intensifies Around Powell

The Federal Reserve is widely expected to halt its interest-rate-cutting cycle this week, as a steadier jobs market restores a degree of consensus at the central bank after months of growing division.

Several officials, including some close to the chair, have been signaling that rates are now in the right place — at 3.5%-3.75% following three consecutive cuts — to shore up employment and still keep downward pressure on inflation.

“They are now essentially within the strike zone of neutral estimates,” said Josh Hirt, senior US economist at The Vanguard Group Inc., referring to the level where rates will ...