According to Jinshi Data, Nick Timiraos, a mouthpiece for the Federal Reserve, said Powell did not rule out a rate cut in July four weeks before the policy meeting. His comments did not show preparations for a rate cut this month. The excessive focus on July may have obscured subtle changes in recent remarks.
After the Liberation Day tariffs, there was speculation that rising prices might lead to a weak labor market before rate cuts could be implemented. But with tariffs suspended and early inflation readings showing no clear impact, Powell hinted that rate cuts could resume if inflation is not as severe as expected.