By Lindsay Dunsmuir
Two Federal Reserve officials are considering an interest rate cut next month as solid economic data boosts confidence. St. Louis Fed President Alberto Musalem and Atlanta Fed President Raphael Bostic, who were previously cautious about lowering borrowing costs too soon, now see a shift in the balance of risks on inflation and unemployment.
Investors, who were expecting a larger rate cut, are now pricing in a 75% probability of a quarter-percentage-point cut in September. The recent positive data on inflation, jobless claims, and retail sales has eased fears of a recession and could lead the Fed to take a measured approach in easing policy.
Analysis: The Federal Reserve officials are considering a rate cut next month due to encouraging economic data. This could impact interest rates, inflation, and consumer spending, potentially affecting individuals' finances and the overall economy.