Fed Chairman Powell likely to maintain interest rates, despite pressure for rate cuts, uncertainty remains in market

From Investing.com: 2025-06-24 08:00:00

Fed Chairman Powell is expected to testify in Congress, likely reaffirming his stance on keeping interest rates steady until the impact of tariffs on inflation becomes clearer. Despite some Fed officials suggesting rate cuts should be considered for July, the market is pricing in a 77% probability of no change at the July 30 FOMC meeting. However, signs of softer economic conditions are emerging, with the Treasury market falling to a two-month low. While President Trump continues to pressure for rate cuts, the likelihood of a July cut remains uncertain, with September seeming more probable.

Atlanta Fed President Bostic supports Powell’s cautious approach, stating there is still time to observe how tariff and policy issues unfold. Although pressure for a rate cut may be increasing, experts believe a September cut is more likely. The outlook for July remains uncertain, with the consensus leaning towards a wait-and-see approach. Fed officials Waller and Bowman advocating for cuts if inflation rises too quickly following tariffs, but a July cut seems unlikely based on current data trends.



Read more at Investing.com: Powell’s Patience VS. Dovish Pressure: Who Wins the Fed’s Summer Showdown?