Ulu Percy, chief U.S. economist at Price, said the Federal Reserve is expected to leave interest rates unchanged at 4.25% to 4.5% this week, but Waller and Bowman are likely to object.
That could fuel speculation that interest rates will fall even faster once more Trump appointees join the Fed Board of Governors starting Quarter 1 in 2026. Dove Waller and Bowman could argue that monetary policy is restrictive because tariff-related inflation is being offset by other factors, and justify a rate cut on the grounds that the neutral rate is close to 3%. Powell is expected to try to steer the FOMC to wait as long as possible for the next rate cut, with October more likely than September.
Agency: The Federal Reserve will stand still this week, with two doves opposing it
2025-07-29 05:15:55
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