The Federal Reserve’s monetary policy committee once again held constant the federal funds rate at a top target of 5.5%. …“Recent indicators suggest that economic activity has continued to expand at a solid pace. Job gains have moderated, and the unemployment rate has moved up but remains low. Inflation has eased over the past year but remains somewhat elevated. In recent months, there has been some further progress toward the Committee’s 2 percent inflation objective.“ …“The Committee judges that the risks to achieving its employment and inflation goals continue to move into better balance.” This text makes it clear that… the Fed is now in position to lower the fed funds rate. However, the FOMC’s does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%. …If the incoming inflation yield no upside surprises, a rate cut in September now appears possible, if not likely.