Fed gearing up to reduce interest rates

Federal Reserve officials are gearing up to reduce interest rates by a quarter-percentage point at the Sept. 17-18 policy meeting. The idea of an aggressive half-point cut to battle the slowdown hasn’t gained much support inside the central bank, according to the WSJ.

• Be Smart: Be on the lookout for today’s jobs report and next week’s readings on retail sales and inflation. These numbers could reshape the Fed’s outlook.

• By the numbers: Yields on the 10-year Treasury note, which stood at 2.02% after the Fed announced its rate cut on July 31st, have fallen to 1.46%, while yields on the two-year Treasury note have dropped to 1.44% from 1.89%.

• Heard on the Street: New York Fed President John Williams: “The economy is in a good place, but not without risk and uncertainty… Our role is to navigate a complex and at times ambiguous outlook to keep the economy growing and strong.”