The Federal Reserve is poised to signal a potential interest rate cut in September, marking a significant shift after two years of aggressive inflation-fighting measures.

While a single cut in the benchmark rate, currently at 5.3%, is expected and may not greatly impact the economy immediately, the key question is how quickly and extensively the Fed will reduce rates thereafter.

This decision has economic and political implications, potentially affecting borrowing costs for consumers and businesses, as well as influencing the upcoming presidential election.