Inflation rates around the world are showing signs of decline, prompting central banks to consider reducing their interest rates. After maintaining high levels for the past two years, several central banks have already taken steps to lower their rates.
The Bank of Canada has made two rate cuts, while central banks in Switzerland and Sweden have also followed suit this year. In June, the European Central Bank reduced its benchmark rate, and the Bank of England recently made its first rate cut.
However, the Federal Reserve in the United States has yet to make a move. Federal Reserve Chair Jerome Powell has been commended for his cautious approach, emphasizing the need to thoroughly assess all available data before making any decisions regarding interest rates.
Despite Powell's deliberate approach, recent market fluctuations have led to speculation that the Federal Reserve may be compelled to implement an emergency rate cut before its next scheduled monetary policy meeting in September.
