{"id":32940,"date":"2025-07-01T15:41:29","date_gmt":"2025-07-01T15:41:29","guid":{"rendered":"https:\/\/financialrush.com\/?p=32940"},"modified":"2025-07-01T15:41:29","modified_gmt":"2025-07-01T15:41:29","slug":"jay-powell-signals-openness-to-july-us-interest-rate-cut","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=32940","title":{"rendered":"Jay Powell signals openness to July US interest rate cut"},"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=153b7630-ac73-49d0-8aaf-330b1ef49421&amp;concept-id=9577c6d4-b09e-4552-b88f-e52745abe02b\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Jay Powell said a July interest rate cut was not \u201coff the table\u201d for the US Federal Reserve, in an apparent softening of his position that the central bank should wait until the autumn to start lowering borrowing costs.\u00a0<\/p>\n<p>The Fed chair, who has come under mounting pressure from President Donald Trump to slash rates, had <a href=\"https:\/\/www.ft.com\/content\/9659042d-35c3-4540-8140-0c0f86cbe5c1\" data-trackable=\"link\">signalled in recent weeks<\/a> that any reduction before September was unlikely.\u00a0<\/p>\n<p>But asked on Tuesday whether a cut this month was out of the question, <a href=\"https:\/\/www.ft.com\/jay-powell\" data-trackable=\"link\">Powell<\/a> responded: \u201cI really can\u2019t say. It\u2019s going to depend on the data. And we are going meeting by meeting.\u201d<\/p>\n<p>\u201cI wouldn\u2019t take any meeting off the table or put it directly on the table. It\u2019s going to depend on how the data fall,\u201d Powell said during a panel event at the ECB Forum on Central Banking in Sintra, Portugal.\u00a0<\/p>\n<p>The market largely brushed off Powell\u2019s comments and focused instead on the strong jobs and manufacturing numbers released on Tuesday morning.\u00a0<\/p>\n<p>The two-year Treasury yield, which moves with interest rate expectations, rose to session highs following the data release, up 0.05 percentage points to 3.76 per cent. That suggested traders were taking off bets on rate cuts this year. <\/p>\n<p>In the futures market, traders pulled back on bets of a July rate cut, despite Powell\u2019s comments.\u00a0<\/p>\n<p>The president has piled pressure on Powell to lower rates, and repeatedly derided the Fed chair for his reluctance to accelerate cuts. <\/p>\n<p>On Monday, Trump shared a handwritten note he had written to the Fed chair that compared the US to other central bank rates.\u00a0<\/p>\n<p>\u201cJerome \u2014 you are as usual \u2018too late\u2019,\u201d Trump wrote. \u201cYou have cost the USA a fortune \u2014 and continue to do so \u2014 you should lower the rate \u2014 by a lot!\u201d<\/p>\n<p>The question of when to cut has opened a <a href=\"https:\/\/www.ft.com\/content\/e5448f51-99cb-4acf-81ea-82de81aef501\" data-trackable=\"link\">schism at the Fed<\/a> between doves seeking lower borrowing costs to offset any softening of economic growth and hawks concerned that Trump\u2019s tariffs will push up inflation.\u00a0<\/p>\n<p>Powell said on Tuesday that the Fed would have lowered rates more quickly if not for the president\u2019s tariffs.\u00a0<\/p>\n<p>\u201cWe went on hold when we saw the size of the tariffs and where essentially all inflation forecasts for the United States went up materially as a consequence,\u201d Powell said.\u00a0<\/p>\n<p>Christine Lagarde, the president of the European Central Bank, said that she and other central bankers in Sintra \u2014 the Bank of England\u2019s Andrew Bailey, Bank of Korea\u2019s Rhee Chang-yong and Bank of Japan\u2019s Kazuo Ueda \u2014 would have done \u201cexactly the same thing\u201d as Powell.<\/p>\n<p>Powell declined to say whether he wanted to stay on a governor after his term as chair ends. He is due to step down in May 2026 but can remain a governor until 2028. <\/p>\n<p>Asked what his advice he would give to his successor, Powell said that the Fed needed to act \u201cin a completely non-political way\u201d to achieve its mandate. \u201cWe don\u2019t take sides. We don\u2019t play one side against the other. We stay out of issues that are really not our bailiwick.\u201d<\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/153b7630-ac73-49d0-8aaf-330b1ef49421\">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":32941,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":["post-32940","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\/32940","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=32940"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/32940\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/32941"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=32940"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=32940"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=32940"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}