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Fed opens the door to potential rate cuts later this year

CHICAGO, ILLINOIS - JUNE 04: Jerome Powell, Chair, Board of Governors of the Federal Reserve speaks during a conference at the Federal Reserve Bank of Chicago on June 04, 2019 in Chicago, Illinois
Fed chair Jerome Powell speaks at a conference in Chicago. Photo: Scott Olson via Getty Images

The Federal Reserve kept interest rates on hold (with one dissenting member) on Wednesday, but a handful of members signaled that it would cut interest rates later this year.

Why it matters: This marks a significant shift in tone for the central bank. Fed Chairman Jerome Powell is facing pressure with roaring markets expecting a number of rate cuts before the end of the year and an economy that’s thought to be on shaky ground. In the meantime, President Trump has been trying to strong arm the Fed to put the U.S. on a "level playing field" by lowering interest rates.

The race to replace Theresa May is down to 4 candidates

Boris Johnson, the frontrunner to replace Theresa May as the leader of the Conservative Party. Photo: Luke Dray/Getty Images

The U.K. Conservative Party's 1922 Committee announced Wednesday the results of the third round of voting by the party's members of Parliament in the race to replace outgoing Prime Minister Theresa May as its leader, narrowing the field from five candidates to four.

The big picture: Boris Johnson, a brash Brexiteer who has said he'd take the U.K. out of the EU without a deal if necessary, is firmly in control of the race and all but guaranteed a spot in its final two. This round of voting saw the elimination of Rory Stewart, an upstart in the race who used a savvy social media campaign to break through the noise.