• The Federal Reserve kept interest rates steady last week, triggering criticism from President Trump and the administration.

• In recent days, several senior Fed officials have expressed support for cutting rates as early as the next meeting in July.

• Fed Governor Christopher Waller said he believes rate cuts should be considered soon. He emphasized that waiting until the job market weakens significantly would be a mistake.

• Waller also mentioned that Trump’s tariffs are unlikely to have a major impact on inflation, leaving room for policy easing.

• Fed Vice Chair Michelle Bowman shared a similar view. She highlighted that risks from tariffs appear to be fading and signs of weakness in the labor market justify discussing rate cuts.

• Chicago Fed President Austan Goolsbee stated that if tariffs do not fuel inflation, there is room to resume rate cuts.

• Goolsbee also pointed out that recent economic data shows limited inflationary pressure, reinforcing the case for a more flexible monetary policy.

What’s Next?
• It is becoming clear that momentum within the Fed is shifting toward rate cuts, especially if inflation stays under control. But it’s worth noting that the final decision will depend heavily on upcoming labor market data and global economic developments.