{"id":32457,"date":"2025-06-24T12:41:17","date_gmt":"2025-06-24T12:41:17","guid":{"rendered":"https:\/\/financialrush.com\/?p=32457"},"modified":"2025-06-24T12:41:17","modified_gmt":"2025-06-24T12:41:17","slug":"jay-powell-to-push-back-on-calls-for-federal-reserve-rate-cuts-as-soon-as-july","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=32457","title":{"rendered":"Jay Powell to push back on calls for Federal Reserve rate cuts as soon as July"},"content":{"rendered":"<p> \n<\/p>\n<div>\n<p>Stay informed with free updates<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\"><span>Simply sign up to the <!-- -->US interest rates<!-- --> myFT Digest &#8212; delivered directly to your inbox.<\/span><\/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=9659042d-35c3-4540-8140-0c0f86cbe5c1&amp;concept-id=9577c6d4-b09e-4552-b88f-e52745abe02b\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Federal Reserve chair Jay Powell has signalled he would push back on calls for interest rate cuts as soon as July, saying the US economy remains \u201csolid\u201d and the effects of President Donald Trump\u2019s trade war and other policy changes are \u201cuncertain\u201d.<\/p>\n<p>Two members of the Fed\u2019s board \u2014 Chris Waller and Michelle Bowman \u2014 have said in recent days that <a href=\"https:\/\/www.ft.com\/content\/1d888414-49e4-4abe-805b-7d921704b994\" data-trackable=\"link\">they would support<\/a> a cut at the Fed\u2019s next rate-setting vote in July, saying recent inflation readings suggested that Trump\u2019s tariffs would have less impact on prices than feared.<\/p>\n<p>While <a href=\"https:\/\/www.ft.com\/jay-powell\" data-trackable=\"link\">Powell<\/a> on Tuesday is set to acknowledge that the impact of Trump\u2019s tariffs is now expected to be less dramatic than predicted in April, he will tell Congress that \u201cincreases in tariffs this year are likely to\u00a0push up prices and weigh on economic activity\u201d.<\/p>\n<p>Powell, whose term as <a href=\"https:\/\/www.ft.com\/federal-reserve\" data-trackable=\"link\">Fed<\/a> chair ends in May 2026, has been under fire from the US president over the Federal Open Market Committee\u2019s decision to keep interest rates on hold. Trump has branded him a \u201cnumbskull\u201d and called for a cut in benchmark borrowing costs of as much as 3 percentage points.\u00a0<\/p>\n<p>The Fed lowered borrowing costs by 1 percentage point last year, but most officials on the FOMC say they want to wait and see how the impact of the trade war plays out before cutting rates again.<\/p>\n<p>In prepared\u00a0remarks, the Fed chair will\u00a0say that while the inflationary impact of the US president\u2019s policies \u201ccould be short lived\u201d, it was \u201calso possible that the inflationary effects could instead be more persistent\u201d.\u00a0<\/p>\n<aside aria-labelledby=\"aside-label\" class=\"n-content-recommended--single-story n-content-recommended--inset\" data-component=\"recommended\">\n<p class=\"n-content-recommended__title o3-type-body-highlight\">Recommended<\/p>\n<div class=\"o-teaser o-teaser--article o-teaser--small o-teaser--stacked o-teaser--has-image js-teaser\" data-id=\"e5448f51-99cb-4acf-81ea-82de81aef501\">\n<div class=\"o-teaser__image-container js-teaser-image-container\"><a href=\"https:\/\/www.ft.com\/content\/e5448f51-99cb-4acf-81ea-82de81aef501\" data-trackable=\"image-link\" data-trackable-context-story-link=\"image-link\" tabindex=\"-1\" aria-hidden=\"true\"><\/p>\n<div class=\"o-teaser__image-placeholder\" style=\"aspect-ratio:2493\/1402\"><\/div>\n<p><\/a><\/div>\n<\/div>\n<\/aside>\n<p>The US economy, meanwhile, remains \u201cin a solid position\u201d, signalling that Powell believes interest rates can remain where they are for now, without unduly damaging America\u2019s labour market.<\/p>\n<p>\u201cThe unemployment rate remains low, and the labour market is at or near maximum employment,\u201d Powell will tell the House of Representatives\u2019 financial services committee shortly after 10am Eastern time.<\/p>\n<p>At 4.25 to 4.5 per cent, the Fed\u2019s benchmark target range remains in restrictive territory \u2014 above a neutral level that neither limits nor spurs growth.<\/p>\n<p>Fed officials are increasingly split on where borrowing costs will end up by the end of 2025.<\/p>\n<p>While both Waller and Bowman want cuts as soon as July, seven officials do not think interest rates will move at all this year.<\/p>\n<p>Ten members support <a href=\"https:\/\/www.ft.com\/content\/e82bb1c0-c0dc-4677-98d0-fba8cd678dba\" data-trackable=\"link\">two or more quarter-point cuts<\/a>, with the remaining two backing one cut.<\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/9659042d-35c3-4540-8140-0c0f86cbe5c1\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Stay informed with free updates Simply sign up to the US interest rates myFT Digest &#8212; delivered directly&hellip;\n","protected":false},"author":6,"featured_media":32458,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":["post-32457","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\/32457","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=32457"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/32457\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/32458"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=32457"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=32457"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=32457"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}