In the midst of a struggling economy, Federal Reserve officials are hinting at a possible rate cut to stimulate growth and combat inflation. With tariffs not amplifying inflation as previously feared, the door is being left open for a rate cut in September.

One way the Fed could potentially lower mortgage rates almost overnight, without the rate cut President Trump desires, is through balance sheet policy adjustments. By purchasing mortgage-backed securities, the Fed could lower mortgage rates to encourage borrowing and spending.

Fed officials are facing pressure to take action as the economy shows signs of slowing down. While the exact timing and extent of a rate cut remain uncertain, the possibility is looming larger as the Fed navigates the current economic landscape. Stay tuned for further updates on the Fed's decisions and their impact on the economy.