{"id":31422,"date":"2025-06-20T15:14:11","date_gmt":"2025-06-20T15:14:11","guid":{"rendered":"https:\/\/financialrush.com\/?p=31422"},"modified":"2025-06-20T15:14:11","modified_gmt":"2025-06-20T15:14:11","slug":"top-federal-reserve-official-calls-for-rate-cuts-as-soon-as-july","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=31422","title":{"rendered":"Top Federal Reserve official calls for rate cuts as soon as July"},"content":{"rendered":"<p> \n<\/p>\n<div>\n<p>Unlock the White House Watch newsletter for free<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\">Your guide to what Trump\u2019s second term means for Washington, business and the world<\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=e3530cfe-654e-4996-96eb-fa1c2b20e008&amp;newsletter-id=65b8fec772badb00166eafc6\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>The US Federal Reserve should begin cutting interest rates as soon as next month, a top official has said, underscoring the deepening schism at the central bank on whether to reduce borrowing costs this year.\u00a0<\/p>\n<p>Fed governor Christopher Waller, a top contender to succeed chair Jay Powell, said that economic data supported lowering rates in the near-term despite the threat of higher inflation from President Donald Trump\u2019s tariffs.\u00a0<\/p>\n<p>\u201cI think we\u2019re in that position and that we could do this as early as July,\u201d Waller, who joined the Fed\u2019s policy-setting panel in 2020 after being nominated by Trump during his first term, told CNBC on Friday.\u00a0<\/p>\n<p>\u201cYou\u2019d want to start slow and bring them down just to make sure that there\u2019s no big surprises. But start the process. That\u2019s the key thing.\u201d<\/p>\n<p>Fed policymakers are divided on whether to lower rates at all this year amid fears that tariff turbulence could cause a fresh surge in inflation while also cooling economic growth.<\/p>\n<p>The Federal Open Market Committee this week <a href=\"https:\/\/www.ft.com\/content\/e82bb1c0-c0dc-4677-98d0-fba8cd678dba\" data-trackable=\"link\">opted to hold rates steady<\/a> in a range of 4.25-4.5 per cent for the fourth consecutive meeting, even as Trump piles pressure on Powell, whose term as Fed chair expires in May 2026, to slash them.\u00a0<\/p>\n<p>Ten members of the committee forecast two or more quarter-point cuts by the end of the year, while seven forecast none. Two expect just one cut.\u00a0<\/p>\n<p>Powell said on Wednesday \u201cWe are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance\u201d and warned \u201cour job is to make sure that a one-time increase in inflation doesn\u2019t turn into an inflation problem.\u201d<\/p>\n<p>But Waller said that any serious tariff price impact had yet to materialise and would be a once-off effect when it did. <\/p>\n<p>\u201cWe\u2019ve been on pause for six months thinking that there was going to be a big tariff shock to inflation. We haven\u2019t seen it,\u201d he said. \u201cWe should be basing policy\u2009.\u2009.\u2009.\u2009on the data.\u201d<\/p>\n<p>\u201cI don\u2019t think we need to wait much longer, because even if the tariffs come in later, the impacts are still the same, it should be a one-off level effect and not cause persistent inflation.\u201d<\/p>\n<p>Trump lashed out at Powell following this week\u2019s FOMC decision and said rates should be 2.5 percentage points lower in order to reduce the cost of interest payments on US government debt. <\/p>\n<p>\u201c\u2018Too Late\u2019 Jerome Powell is costing our Country Hundreds of Billions of Dollars. He is truly one of the dumbest, and most destructive, people in Government, and the Fed Board is complicit,\u201d the president <a href=\"https:\/\/truthsocial.com\/@realDonaldTrump\/posts\/114710405985383754\" data-trackable=\"link\">wrote<\/a> on his Truth Social platform on Thursday. <\/p>\n<p>Asked about the president\u2019s comments, Waller insisted that for the Fed, it \u201cnot our job\u201d to address the cost of financing government debt. <\/p>\n<p>\u201cOur mandate from Congress tells us to worry about unemployment and price stability, and that\u2019s what we\u2019re doing. It does not tell us to provide cheap financing to the US government,\u201d he said. <\/p>\n<p>\u201cThat is really the job of Congress and the Treasury to make sure you have a fiscal situation that is sustainable that will bring the deficits down and that will put downward pressure on interest rates all by itself.<em>\u201d<\/em><\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/e3530cfe-654e-4996-96eb-fa1c2b20e008\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Unlock the White House Watch newsletter for free Your guide to what Trump\u2019s second term means for Washington,&hellip;\n","protected":false},"author":6,"featured_media":31423,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":["post-31422","post","type-post","status-publish","format-standard","has-post-thumbnail","category-us","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/31422","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31422"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/31422\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/31423"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31422"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31422"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31422"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}