Should the Federal Reserve cut rates next month?

Federal Reserve Chair Jerome Powell recently opened the door for the central bank to cut rates next month.

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Powell had previously cited risks of inflation from tariffs and a weakening labor market as reasons for not lowering rates. “The balance of risks appears to be shifting,” he said at a conference in Wyoming.

President Donald Trump has been calling for interest rate cuts for most of his second term. Some experts, and other Federal Reserve officials, have cautioned against cutting rates because it could limit the Fed’s tools if a major economic downturn happens.

Question: Should the Federal Reserve cut rates next month?

James Hamilton, UC San Diego

YES: The latest data show a significant slowdown in new jobs, and high interest rates are weighing on real estate. Man