White House Pressures Federal Reserve to Cut Rates in July

White House trade advisor Navarro openly calls for the Federal Reserve to cut rates immediately at the July meeting, criticizing Chairman Powell for delaying policy adjustments that have harmed the economy. Former Federal Reserve Governor Warsh (a leading candidate for the next chair) also supports a rate cut, stating that current policies are suppressing growth. Analysts believe that the dovish comments from potential successors are intended to curry favor with Trump.

The Federal Reserve's minutes released signals for a rate cut, with institutions predicting an early strong dovish signal from the Fed's June meeting minutes, indicating that the “wait-and-see period” for rate cuts may end by late summer. Key dynamics include:

1. Citigroup: Expects to start rate cuts in September, with a cumulative cut of 125 basis points before March 2025;

2. Goldman Sachs: Advances rate cut expectations by three months to September, lowering the terminal rate forecast from 3.5% to 3.25%, while significantly raising the S&P 500 index 12-month target to 6900 points (originally 6500 points);

3. Basis: Inflation pressures are lower than expected, the job market shows signs of weakness, and the tariff impact may be one-time absorbed. #BTC☀️