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AP Business SummaryBrief at 5:29 p m EST

Inflation is nearly back to 2% So why isn t the Federal Reserve ready to cut rates?

From Wall Street traders to car dealers to home buyers, Americans are eager for the Federal Reserve to start cutting interest rates and lightening the heavy burden on borrowers. Inflation, as measured by its preferred gauge, rose in the second half of 2023 at an annual rate of about 2% the Fed’s target level. Yet several central bank officials have underscored that they aren’t ready to pull the trigger just yet. Most of the Fed’s policymakers have said they’re optimistic that even while the economy and the job market keep growing, inflation pressures will continue to cool. But they also caution that the economy appears so strong that there’s a risk that price increases could re-accelerate.

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