Federal Reserve Board Member Christopher Waller indicated that the U.S. central bank could begin cutting interest rates as early as July 2025. In an interview with CNBC, Waller stated that inflation is no longer a major threat, allowing the Fed room to lower interest rates and monitor inflation developments further. He warned against delaying interest rate cuts until the labor market weakens significantly.

However, support for interest rate cuts at the Federal Open Market Committee (FOMC) meeting at the end of July remains divided. Some members support this move, while the majority remain cautious due to concerns that imposed import tariffs could trigger inflationary pressures again. The majority of FOMC members expect interest rate cuts to occur in the second half of this year, not in July.

Waller's statement marks an important policy shift and has boosted positive sentiment in the stock market and other risky assets, as the potential for monetary easing could enhance liquidity and economic growth. However, the final decision still awaits the outcome of the FOMC meeting on July 29-30, 2025.#thefed $BTC