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The Federal Reserve is widely expected to cut its benchmark interest rate for the first time in four years at its policy meeting next week, after holding the rate at a two-decade high for the past year.

High borrowing costs have weighed on the U.S. economy as the Fed hiked rates starting in 2022 to battle inflation. But now that the central bank is all-but-certain to announce a rate cut next Wednesday, some economists are asking: What took so long?

“Typically, the Fed always waits too long, and it’s likely that will be the case with this Fed,” wrote Dan North, senior economist at Allianz Trade Americas.

The Fed has held the fed funds rate at a range of 5.25% - 5.5% in the hopes that high borrowing costs would discourage consumer and business spending, therefore easing price pressures. 

The Fed's preferred measure of inflation, which hit a post-pandemic high of more than 7%, has fallen to 2.5%, nearing the central bank's annual target rate of 2%. At the same time, the surging labor market that helped spur inflation has begun to cool under the weight of the high interest rates.

Fed Chair Jerome Powell and other officials have acknowledged the progress on inflation while expressing concern about the weakness in the labor market. They've also said that inflation doesn't have to fall all the way to the target level before interest rates are cut.

In the eyes of some economists, the signs have been clear that an easing of interest rates should have already happened.

“I think the Fed should have started to cut rates earlier since the labor market and overall economy are softening meaningfully and inflation, despite some bumps along the way, is trending lower,” said Kathy Bostjancic, senior vice president and chief economist at Nationwide

Bill Adams, chief economist for Comerica Bank, said that strong jobs market data helped motivate the Fed to keep interest rates elevated. But with the downward revisions in some of that data, the labor market is weaker than it appeared.

“After badly missing the inflation target between 2021 and 2023, the Fed erred on the side of waiting longer to cut rates this year, even if it risked a weakening job market,” Adams wrote. 

Some economists argued that the Fed needed to cut interest rates at its July meeting, where rate cuts were discussed but ultimately officials voted to keep borrowing costs unchanged.

According to some estimates, current interest rates could be as much as two percentage points too high for current economic conditions, meaning that Fed officials may need to play catch-up. 

“They might even think, whoa, we’re behind the curve,” said Robert Kavcic, senior economist at BMO Economics. 

The Fed has typically been slow on changing interest rates because officials either have misjudged the time lag to see the effects of rate changes, or they are waiting as long as possible to make sure that inflation doesn’t reaccelerate, Allianz's North said.

“Unfortunately, by waiting too long, the Fed has historically slowed the economy sharply,” he said. 

One signal that could show that officials believe they were too slow on cutting interest rates would be if the Fed cut rates more than the standard quarter-percent point that most economists see coming. 

“It would also send the wrong message to the financial markets, that is, one of panic on the Fed's part,” said North.

As of late Thursday, market participants were pricing in about a 33% chance that the Fed will cut the benchmark rate by half a percentage point next week, according to the CME Group’s FedWatch tool, which forecasts rate movements based on fed funds futures trading data. That's up from around 15% Wednesday but well below the 50% probability that was priced in last Friday following a weaker-than-expected jobs report for August.

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The Peoples Democratic Party (PDP) has taken swift action against one of its prominent members, Senator Dino Melaye from Kogi, suspending him over alleged anti-party activities.

According to Tribune Online, the decision was made by the ward party executive committee in Ayetoro/Iluagba Ward 1 after reviewing the report of the disciplinary committee set up to investigate Melaye’s actions.

It appears that Melaye’s recent actions were deemed detrimental to the PDP’s interests and unity, prompting the suspension. This move is not unprecedented, as the PDP has taken similar actions against other members accused of anti-party activities. For instance, Peter Babalola, a chieftain from Osun, was suspended in August 2024 for alleged anti-party activities and not attending party meetings for two years.

In another instance, former Governor of Benue State, Samuel Ortom, was also suspended by the Benue PDP over alleged anti-party activities.Similarly, Senator Gabriel Suswam and others were summoned by the Benue PDP over alleged gross misconduct and anti-party activities. These actions demonstrate the PDP’s commitment to maintaining party discipline and unity. However, details of Melaye’s suspension are still emerging, and more information is expected to follow.

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Actor Etim Effiong has said dating in 2024 is so exhausting.

He said was just thinking about it and he is already sweating for you all. He really didn’t know how those guys are coping out there. Singles how far?

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Signet Jewelers (SIG) shares jumped Thursday as the jewelry retailer beat profit forecasts and gave an upbeat assessment of same-store sales. 

The operator of Zales, Jared, and Kay Jewelers stores posted fiscal 2025 second-quarter diluted earnings per share (EPS) of $1.25, $0.09 better than the average estimate of analysts surveyed by Visible Alpha. Revenue declined 7.6% to $1.49 billion, short of forecasts. 

Same-store sales dropped 3.4%, which was better than Wall Street expected. Same-store sales were “turning positive third quarter to date," according to CEO Virginia Drosos. The company expects them to finish in a range of down 1.0% to up 1.5%. Wall Street expected them to fall 1.2%, according to Visible Alpha data.

In the second quarter, North American sales fell 6.9% to $1.4 billion on fewer transactions. International sales tumbled 15% to $86.5 million, also because of a slide in transactions, plus the previously-announced sale of its prestige watch locations.

Signet predicts current quarter sales of $1.345 billion to $1.380 billion, while the Visible Alpha estimate is for $1.35 billion.

Despite today’s gains, with the stock up some 12%, shares of Signet Jewelers remain lower in 2024.

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A man has revealed why he believes infidelity won’t be an issue in his relationship with his girlfriend.

He said the main reason his girlfriend can not ch£At on him is because she doesn’t like s+x.

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Median income fully recovered from the pandemic last year, the first statistically significant increase since 2019, the Census Bureau found.

According to data released this week, real median household income rose by 4% in 2023 to reach $80,610. The data underscores the hot labor market in 2023, when 2.7 million jobs were created and strong monthly jobs reports helped keep the U.S. economy from sliding into a recession that many economists forecast.

“These robust income gains reflect the labor market that produced strong employment and wage gains,” wrote the White House Council of Economic Advisers.

Household income rose evenly throughout different earnings brackets and groups, while income inequality measurements showed some improvements.

The data did show that the bottom 10% of workers increased their wages by 6.7%, better than the 4.6% earnings growth for the top 10%. The poverty rate also dropped slightly.

Economists Elise Gould and Josh Bivens at the Economic Policy Institute, a nonpartisan think tank, wrote that the improving income data showed that post-pandemic fiscal relief helped the labor market quickly recover after the COVID-19 slowdown.

“Today’s data highlight the extraordinary strength of the recovery from the economic crises caused by the pandemic,” they wrote in a blog post.

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