Powell Says Most FOMC Members Expect A Fed Rate Cut Later This Year

Jerome Powell has again discussed the possibility of a Fed rate cut this year, stating that most FOMC participants expect it to happen later this year. The Fed Chair also commented on the possibility of a rate cut at the upcoming July FOMC meeting.

Powell Raises Possibility Of Fed Rate Cut Later This Year

Speaking at the ECB forum on Central Banking, Powell stated that a solid majority of FOMC participants deem it appropriate to cut rates again later this year. This came as the Fed Chair gave his thoughts on an interest rate cut and whether it was too soon to cut rates.

Powell still maintained that the US economy was in a good position for them to just wait and see what impact the Trump tariffs would have on the economy. He admitted that inflation has so far come in line with expectations, which typically opens the door for a Fed rate cut. However, he stated that they expect higher inflation readings over the summer.

Meanwhile, the Fed Chair also remarked that he can’t say whether July is too soon to consider a rate cut and that it would depend on the incoming data. This will include the June CPI and PPI inflation data, which will come out on July 15 and 16, respectively.

Federal Reserve Governor Christopher Waller had stated that a Fed rate cut could happen as soon as July. However, traders are betting against a rate cut following the July FOMC meeting. CME FedWatch data shows that there is an 80.9% chance that the Fed will keep rates unchanged following the July 30 meeting.

However, just like the FOMC participants, traders also anticipate an interest rate cut later in the year, starting from September. As CoinGape reported, odds for a September rate cut have soared to 94%.

Powell Comments On Trump’s Attacks

Jerome Powell stated that he is just focused on doing his job when asked about Donald Trump’s attacks, as part of the president’s push for a Fed rate cut. The Fed Chair further remarked that he simply wants to ensure that the labor market is as strong as it can be and provide stability for the US economy.

As CoinGape reported, Donald Trump sent a handwritten letter to Powell, asking for the Fed to lower rates to around 1%. The president has also said that he is interviewing candidates to replace the Fed Chair.

Powell failed to comment on whether he plans to remain as Fed Governor when his tenure as Chair ends in May next year. He said that he is focused on handing over a strong economy to his successor.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several niches. His speed and alacrity in covering breaking updates are second to none. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand.

Boluwatife is also a lawyer, who holds a law degree from the University of Ibadan. He also holds a certification in Digital Marketing.

Away from writing, he is an avid basketball lover, a traveler, and a part-time degen.

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