Fed likely to leave rates alone but signal readiness to cut

WASHINGTON (AP) — Jerome Powell has tantalized the financial world with the prospect that the Federal Reserve he leads may soon cut interest rates for the first time in over a decade.

Probably not quite yet, though.

When the Fed issues a policy statement Wednesday and Powell holds a news conference, the message will likely echo the theme the chairman struck in a speech early this month: That the Fed will act if it thinks the Trump administration’s trade conflicts are threatening the U.S. economy.

Powell’s remarks were seen as a signal that the Fed will likely cut rates later this year, and the stock market surged in response.