A top official at the Federal Reserve is saying that this month's stunning, weaker-than-expected report on the U.S. job market is strengthening her belief that interest rates should be lower.

The independent central bank uses interest rates as a tool to manage its dual mandate. The Federal Funds Rate is the price the Fed charges U.S. banks to borrow money overnight. This sets short-term benchmark interest rates for borrowing money via credit cards and home equity, auto, and student loans.

Federal Reserve officials are split on whether to slash interest rates as President Donald Trump favors rate cuts based on his claim that the nation’s economy is thriving.

The Federal Reserve will release its interest rates decision Wednesday, but it's unlikely to cut rates. Trump has lobbied against Fed Chair Jerome Powell.

Some investors had clung to a bit of hope that the Federal Reserve would cut interest rates at its next meeting on July 30. Tuesday's report on inflation brought the chances of that down even further.

Federal Reserve Keeps Interest Rates Steady for Fifth Meeting in a Row transcript In support of our goals, today, the Federal Open Market Committee decided to leave our policy interest rate unchanged.

J.P.Morgan now expects the U.S. Federal Reserve to cut interest rates by 25 basis points at its September meeting, citing signs of weakness in the labor market and uncertainty around President Donald Trump's latest Fed nomination.

JPMorgan is now predicting the Federal Reserve will begin cutting interest rates when it next meets in September — and four times overall before the end of the year — as pressure mounts to ease monetary policy.

Wall Street is back to betting that the Federal Reserve will ride to the rescue, and that could be risky if the numbers don’t line up. A weak July payrolls report, paired with big downward revisions to earlier months,

JPMorgan reportedly expects the U.S. Federal Reserve to lower interest rates by 25 basis points in September, compared with its earlier forecast of a rate cut in December. According to a Reuters report,

JPMorgan Chase & Co.’s top U.S. economist now expects the Federal Reserve will cut interest rates three times in 2025, beginning with a 25-basis-point cut in September.