Interest rate cuts may come earlier ⚠️⚠️⚠️⚠️
Federal Reserve Chairman Powell told members of Congress on Tuesday that if
it weren't for concerns that increased tariffs might undermine the central bank's years-long efforts
against inflation, recent economic data could have provided a basis for continuing interest rate cuts.
While Powell did not explicitly rule out the possibility of a rate cut next month, his remarks
did not send a strong signal. In response to lawmakers' inquiries, he hinted that officials are more
likely to wait at least until the September meeting to see if price increases triggered by tariffs
are more moderate than expected before deciding whether to resume rate cuts.
“If inflation pressures indeed remain controlled, we will cut rates sooner rather than later,
but I am reluctant to point to any specific meeting,” Powell said at the House Financial Services
Committee hearing.