After the Fed’s pivotal interest rate cut this week, policymakers face the question of how much further to reduce borrowing costs, and how fast.

A Federal Reserve official predicted quarter point rate cuts if data looked ‘fine’. But he also set out a scenario for a pause — or faster reductions.

The Fed made an unexpected half-point rate cut, its first since 2020, as it aims to balance robust employment with its inflation target. Learn more about the economic implications, market reactions and future projections.