Federal Rate Cut Cycles: What you need to know.
- Fed Chair Powell signaled at Jackson Hole that a September rate cut is likely, citing tariff pressures, inflation, and a slowing job market.
- The July jobs report showed weaker-than-expected growth (73,000 jobs, with downward revisions), increasing the likelihood of Fed support.
- Inflation reflects tariff impacts, but the Fed is expected to proceed cautiously.
- A chart of past rate cut cycles highlights how the Fed has frequently adjusted policy over the last 50 years.
While Fed moves may drive short-term volatility, successful investing relies on diversified, long-term portfolios rather than timing rate decisions.
