Fed chair Jerome Powell joined counterparts in Canada and Europe by shifting to interest rate cuts after a protracted struggle with inflation. Like his peers, Powell declined to say when the next cut will come, or if it will be as large as today’s outsized drop in borrowing costs. The median forecast of Fed officials imply a half-point reduction is expected by the end of the year, and a full percentage point of cuts in 2025. (The Logic)

Talking point: The Fed was slower to pivot, but it did so decisively by opting for an outsized half-point move instead of a more typical quarter-point adjustment. One of the 12 Fed officials with votes on policy declared their preference for a smaller cut, suggesting some doubt that inflation in the U.S. economy has been vanquished. But unlike other central banks, the Fed is tasked with achieving both price stability and supporting “maximum” employment. With the jobless rate drifting higher, the Fed has been facing criticism that it has fallen behind the curve. Powell insisted he hasn’t, describing the outsized cut as a “sign” of the Fed’s commitment to keep that from happening.