Shift in Fed sentiment towards easier monetary policy with potential rate cuts ahead

From Investing.com: 2025-06-25 09:32:00

Federal Reserve Chairman Jerome Powell reiterated the Fed’s policy of slower economic growth with expected higher inflation at his Congressional testimony. However, there is a shift in sentiment within the Fed towards easier monetary policy in the coming months, with some Fed governors expressing the need for rate cuts. Chicago Fed President Austan Goolsbee noted that the impact of tariffs on the economy has been less severe than expected. Services inflation, a concern since 2022-2023, is finally starting to align with the Fed’s goals. The Fed’s actions and the impact on Treasury debt are key factors in the current economic landscape.



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