Fed governor Waller recommends rate cut in July, sparking positive market reaction.

From Yahoo Finance: 2025-06-20 20:12:00

President Donald Trump and a top Fed official are pushing for rate cuts, with the official recommending a cut next month. Trump has called for lower rates, while Waller believes inflation won’t be impacted by tariffs and rates should be cut. The Fed is still debating the issue, with futures implying a 83% chance of no cut in July.

Waller’s comments sparked a positive market reaction, though gains were later pared. Major US indexes were slightly up, with the S&P 500 at 5,985.71, the Dow Jones at 42,318.84, and the Nasdaq Composite at 19,491.52. Powell remains cautious, stating the current policy position is appropriate.

Trump has expressed frustration with Powell and has considered firing him. Potential replacements for Fed chairman include Kevin Warsh, Judy Shelton, and Scott Bessent. However, betting markets show no pick before December 2025. Powell remains committed to data-driven decision-making and has not yet indicated a move on rates.



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