(July 11): The Federal Reserve is preparing to cut interest rates for the first time in a decade because it sees a cooling global economy and no sign of overheating in the jobs market at home.

Since the Fed opened the door to lower borrowing costs last month, plenty more data has arrived to back up the view that “manufacturing, trade and investment are weak all around the world,” Chairman Jerome Powell told Congress at a hearing on Wednesday.

He said June’s jobs report, which showed stronger-than-expected hiring in the US, was “great news” -- but not enough to tilt the balance, because wages aren’t rising fast enough to trigger much inflation. In fact, Powell made it clear that inflation is still too low.

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