According to ChainCatcher, Tom Graff, Chief Investment Officer of Facet, stated that the Federal Reserve faces dual pressures of inflation and interest rate cuts. Although the White House has not applied pressure, the weak labor market has raised concerns for the Federal Reserve.
Waller and Bowman opposed maintaining interest rates at the meeting, advocating for a rate cut, which may lay the groundwork for starting rate cuts at the September meeting and possibly another 1 to 2 rate cuts within the year. Trump's continued pressure on interest rates has intensified communication difficulties.
If job growth continues to weaken, the likelihood of an economic recession will increase, and Powell may be seen as yielding to Trump's demands.