Overview

• Governors Christopher Waller and Michelle Bowman cast the two dissenting votes in favor of an immediate quarter-point rate cut, marking the first split vote by two governors in over three decades.
• Officials said they must evaluate how President Trump’s tariffs could further drive up consumer prices before considering policy loosening.
• Markets now anticipate a first rate reduction in September, assigning roughly a 62% probability to that move.
• Data from the Bureau of Economic Analysis showed U.S. GDP growth accelerated to an annualized 3% in the second quarter while unemployment hovered near its lowest rate in years.
• White House criticism of the Fed’s $2.5 billion headquarters renovation has fueled attacks on Chair Powell’s stewardship and raised questions about central bank autonomy.