Beginning Sept. 16, the Federal Reserve will hold a two-day meeting that could reduce interest rates for the first time in 2025.
Recent data shows a slowdown in job growth in the United States for August, with 22,000 new jobs added. Revised figures from the Bureau of Labor Statistics reflected a net loss of 13,000 jobs in June, the biggest decline since December 2020.
Combined with Thursday’s Consumer Price Index showing inflation rising to 2.9% in August – its highest level since January 2025 – an interest rate reduction appears likely according to Florida State University’s William Christiansen.
Christiansen is an associate professor of finance in FSU’s College of Business. He served as the Department of Finance Chair for 18 years and has expertise in macroeconomic policy issues and bank management.
He expects next week’s Fed meeting to signal the first rate cut by the U.S. central banking system since December 2024.
“We are expecting a 25-basis point decrease,” Christiansen predicted. “The job market data from last week was weak. We are looking at the inflation reports this week and are hoping for a tame report.”
Media interested in getting analysis from associate professor Christiansen on next week’s important Fed meeting may reach out to him at wchristiansen@business.fsu.edu.