Top Fed Official Backs Jul. Rate Cut
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By Michael S. Derby NEW YORK (Reuters) -Federal Reserve Governor Christopher Waller said on Thursday he continues to believe the U.S. central bank should cut interest rates at the end of this month amid mounting risks to the economy and the strong likelihood that tariff-induced inflation will not drive a persistent rise in price pressures.
J.P. Morgan warned in a note that Trump's pressure on the Federal Reserve and threats to fire Chair Powell could undercut central bank independence and increase inflation risks.
The central bank is poised to hold interest rates steady this month, but there could be a path to cut as early as September.
A Fed policy rate that low is not typically a sign that the U.S. is the "hottest" country in the world for investment, as Trump has said.
When the Federal Reserve concluded its policy meeting Wednesday, the Fed lowered its benchmark, short-term federal funds rate by a half-percentage point, or 50 basis points, to a range of 4.75% to ...