Fed Hints at Rate-Cut Timeline, Sparking Wall Street Rally

Sat, 09 May 2026 00:00:00 +0000

Federal Reserve officials signaled on Friday that interest-rate cuts could begin as early as July if inflation continues on its current downward trajectory, sparking a sharp rally across Wall Street and reigniting hopes for a so-called “soft landing.”

In a closely watched speech in Chicago, Fed Governor Lisa Thornton noted that core inflation had fallen to 2.4% in April — the lowest reading since 2021 — and said the central bank was “increasingly confident” that price pressures were sustainably easing without requiring further economic pain.

Fed on Cowlpane

Fed Hints at Rate-Cut Timeline, Sparking Wall Street Rally