Inflation has slowed. Now the Federal Reserve faces expectations for rate cuts

WASHINGTON (AP) — Chair Jerome Powell will enter this week’s Federal Reserve meeting in a much more desirable position than he likely ever expected: Inflation is getting close to the Fed’s target rate, the economy is still growing at a healthy pace, consumers keep spending and the unemployment rate is near a half-century low. When they last met in December 2023, the Fed’s policymakers said they expected to cut their benchmark rate three times this year. Yet the timing of those rate cuts, which would lead to lower borrowing costs for consumers and businesses, remains uncertain. Most economists say they expect the first rate cut to occur in May or June 2024.