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Fed set to lower interest rates despite rising inflation

The tension between price stability and maximum employment will not ease quickly

This article is from Monetary Policy Radar, a new product from the FT designed to help investors anticipate monetary policy decisions.

The Federal Reserve is poised to lower interest rates on September 17 in what markets expect to kick off a series of reductions that will fuel the US economy for the rest of this year.

At a time of acute political pressure on US central bankers, Fed chair Jay Powell signalled his support for a pivot towards rate cuts at the annual Jackson Hole symposium in August.

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