Overview

• Powell repeatedly rejected political pressure in Congress by insisting that the Fed will base policy strictly on incoming economic data.
• The benchmark federal funds rate has stayed at 4.25 to 4.50 percent since December after three cuts late last year.
• President Trump has pressed for immediate rate reductions of two to three percentage points to support growth and reduce borrowing costs.
• Governors Michelle Bowman and Christopher Waller signaled support for a rate cut as soon as the Fed’s July meeting if inflation pressures remain contained.
• Although Fed projections foresee two quarter-point cuts this year, officials are divided on whether easing should begin in July or wait until later in response to evolving tariff effects and labor market signals.