The Federal Reserve is closely watching inflation data to determine if interest rates will be cut. Investors are hopeful that low inflation numbers could lead to a rate reduction. The Fed meets quarterly to assess the economy and adjust rates as needed. A decrease in inflation would suggest a strong economy, potentially leading to lower interest rates. However, high inflation can be a sign of economic growth and may require tighter monetary policy.
Source: https://www.ft.com/content/6376fe84-b09d-4905-bce3-03e22d280674