With inflation cooling and worries about the job market spreading, the central bank is expected to announce a long-awaited rate cut next week.

Inflation hit a three-year low in August, paving the way for the Federal Reserve to cut interest rates next week. According to the Labor Department, consumer prices rose 2.5% from a year earlier, marking the fifth consecutive annual decline and the smallest increase since February 2021.

Inflation in the United States may have hit a three-year low in August, underscoring that the rate of price increases is falling back to pre-pandemic levels and clearing the way for the Federal Reserve to start cutting its key interest rate