WASHINGTON—With inflation edging closer to the Federal Reserve’s 2 percent target, its policymakers are facing—and in some cases fueling—hopes that they will make a decisive shift in policy and cut interest rates next year, possibly as soon as spring.
Such a move would reduce borrowing costs across the economy, making mortgages, auto loans, and business borrowing less expensive. Stock prices could rise, too, though share prices have already risen in expectation of cuts, potentially limiting any further rise.
