Andrew here. An Israel-Hamas deal could pave the way for an exchange of hostages and prisoners, creating the opportunity for a real peace agreement. It could be an extraordinary moment — if it happens and endures. Long-lasting stability in the region could also make the Middle East an even more powerful force in the world economy.
Meanwhile, we’re focused on the debate inside the Fed over how many times to lower interest rates this year — and what concerns policymakers have about the strength of the economy. More on that and other news below.
A question of cutting rates
Futures markets suggest that the Fed will follow through on more rate cuts at the last two meetings of the central bank’s chief policy committee of the year.
But new signs are emerging that such a move doesn’t necessarily have unanimous support, and that Fed policymakers are keenly aware of the risks that step might present.
What’s new: Data released right after the Fed’s rate-setting committee met last month showed official support by nearly every member for cutting interest rates by a quarter point to 4 percent to 4.25 percent. Most support bringing borrowing costs down to 3.5 to 3.75 percent by year end.
But minutes from the meeting published on Wednesday show it’s a bit more nuanced than that: “A few participants stated there was merit in keeping the federal funds rate unchanged at this meeting or that they could have supported such a decision,” they read. Seven of 19 policymakers indicated that they saw a need for no more cuts for the rest of the year.
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