"Fed mouthpiece": Powell remains flexible, rate cut decision factors change

"Fed mouthpiece" Nick Timiraos said Powell dodged a pointed question about July (a rate cut), refusing to rule anything out four weeks before the policy meeting. His overall comments give little indication that he is preparing for a rate cut this month. The "excessive" focus on July (at least today) is inappropriate and could mask more subtle changes in his and others' rhetoric in recent weeks. In the wake of the Liberation Day tariffs, there is speculation that price increases could be so large that substantial weakness in the labor market would be required before a rate cut. But lately, with the pause in tariffs and the early (possibly premature?) The inflation readings did not show a meaningful impact, and Powell hinted that interest rate cuts could resume if inflation is not as bad as feared.