Collins said that while core inflation pressures remain elevated, she is increasingly confident inflation is moving back to the Fed's 2% target.

Financial markets are highly sensitive to Fed policy, with traders expecting a rate cut in Nov. despite recent inflation. Read my latest update on the Fed here.

The Federal Reserve, the central banking system of the United States, wields a significant influence on the country’s economy. Its decisions on interest rates can ripple through everything from the stock market to the average American’s mortgage payment.

History shows that Fed rate cuts often boost the stock market, but context matters—normalization cuts tend to drive gains, while recession cuts can lead to losses.

By Ann Saphir (Reuters) -Four Federal Reserve policymakers on Monday expressed support for further interest-rate cuts, but appeared to differ on how fast or far they believe any cuts should go. Three of them,

Key Takeaways While the Federal Reserve has projected more interest rate cuts this year, some officials are cautious as more economic data comes in.Investors are pricing in rate cuts at each of the next two Fed meetings,