📊 Federal Reserve Officials Divided on 2025 Rate Cuts

June 18, 2025 – Washington, D.C.

The U.S. Federal Reserve is facing internal disagreement on when — and how much — to cut interest rates in 2025. As inflation slowly cools and economic growth softens, Fed policymakers are split.

🔍 Key Highlights:

Some officials advocate for early rate cuts to support slowing job growth and avoid recession.

Others warn that cutting too soon could reignite inflation, which remains above the 2% target.

Recent data shows moderating inflation but still elevated cost pressures in housing and services.

Labor market is resilient but showing signs of deceleration in new hiring and wage growth.

Market reaction has been cautious, with investors watching Fed speeches for clues on timing.

💡 What to Expect:

No clear consensus yet — policy will remain data-driven and flexible.

A slow and careful approach is likely, with rate cuts possible later in the year if conditions align.

Takeaway:

The Fed is walking a tightrope — and every economic report now holds more weight than ever.