The Dow Jones (DJIA) is trading in positive territory ahead of a speech by Fed Chair Jerome Powell at 12:35 p.m. Eastern Time that could shed light on where interest rates are headed.
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Last week, the Fed cut interest rates by 25 bps, the first reduction since December 2024. 11 voting officials were in favor of the decision, while newly appointed Fed Governor Stephen Miran dissented in favor of a 50 bps cut. Powell characterized the cut as a “risk management” move, easing expectations of a rapid rate reduction cycle.
Fed Split on Path for 2025 Rate Cuts
Fed officials have differing opinions on where interest rates should sit by the end of the year with two Federal Open Market Committee (FOMC) meetings remaining. Yesterday, Miran advocated for more rate cuts, while Atlanta Fed President Raphael Bostic said that inflation risks justify keeping the rate steady.
Last week, Federal Reserve Bank of Minneapolis President Neel Kashkari voiced his support for a rate cut at each of the remaining two meetings in 2025, arguing that they would support a weakening labor market.
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