Overview

• Governor Christopher Waller said in a CNBC interview that the Fed could cut its policy rate as soon as the July meeting.
• He noted that inflation has eased from its mid-2022 peak and that tariffs are unlikely to drive significant price increases.
• The Federal Open Market Committee held its key interest rate steady at its most recent meeting, marking the fourth consecutive pause.
• Waller cautioned that preemptive rate reductions may be necessary to prevent a downturn in the labor market.
• President Trump has been urging the Fed to lower rates to reduce borrowing costs on the $36 trillion national debt.