The Federal Reserve has opened the door to cutting interest rates in the second half of the year, and officials are clearly divided

Nick Timiraos, the "Federal Reserve mouthpiece", wrote that the Federal Reserve left interest rates unchanged this time, leaving the possibility of a rate cut in the second half of this year. To resume the rate cuts that began last year, Fed officials may need to see a softening of the labor market or stronger evidence that price increases caused by tariffs will be relatively mild. The forecasts released show that officials are open to getting evidence before the autumn. The new rate forecasts highlight the divisions among 19 officials. Ten of them expect at least two rate cuts this year, a smaller proportion than in March, and two expect one rate cut. Meanwhile, seven see no change this year, up from four in March.