Fed Set for Rate Cut: Inflation Surges, Labor Market Weakening

The Federal Reserve is on track to cut interest rates in September, driven by a surge in inflation and signs of a softening labor market. The Personal Consumption Expenditures price index, the Fed’s preferred measure of inflation, jumped 0.4% in July, cementing its message that pricing pressures persist. This data fuels speculation about a potential rate cut, with experts attributing this rise to expanding DeFi applications and increased institutional investments.