Mild Inflation Signals Fed Rate Cut Likely in September

Understanding the Federal Reserve's Role

The Federal Reserve plays a crucial role in managing the United States' monetary policy. By adjusting interest rates, the Fed aims to maintain economic stability. Interest rates are charges for borrowing money, and they influence spending and saving in the economy. When rates are low, borrowing is cheaper, encouraging spending and investment. Conversely, high rates can slow spending and curb inflation.