Fed Governor Christopher Waller has reiterated his support for a rate cut at the July 29-30 Federal Open Market Committee (FOMC) meeting, arguing that President Trump’s tariffs will result in a one-time price increase and won’t contribute to persistent inflation. He also said that the unemployment rate remains healthy near its long-run level.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
“The policy rate is still pretty restrictive. We can lower that,” said Waller at a Dallas Fed event on Thursday.
Fed Split on When to Cut Rates in 2025
The Fed released the minutes from its June 17-18 meeting on Wednesday, showing that most policymakers supported rate cuts in 2025 while “some” supported no cuts because inflation is still above 2%. At the same time, the officials have differing opinions on when to cut rates in 2025. Only a “couple” of Fed members supported a July rate cut, likely referring to Fed Governors Christopher Waller and Michelle Bowman.
A rate cut is unlikely to happen this month, with CME’s FedWatch tool assigning a slim 6.7% chance for a 25 bps reduction.
Track the federal funds rate and other key economic metrics with TipRanks’ Economic Indicators Dashboard.
