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2025-07-29 13:02:16
[Institution: The Federal Reserve will remain on hold this week, and two major doves are expected to object] Ulu Persi, chief U.S. economist at Price, said that the Federal Reserve is expected to keep interest rates unchanged at 4.25%-4.5% this week, but Waller and Bowman may object. This may fuel speculation that interest rates will fall faster once more officials appointed by Trump join the Federal Reserve Board starting in the first quarter of 2026. Dovish Waller and Bowman may argue that monetary policy is restrictive because tariff-related inflation is being offset by other factors, and use the neutral interest rate of close to 3% as a reason to cut interest rates. Powell is expected to try to guide the FOMC to wait as long as possible for the next rate cut, and a rate cut in October is more likely than in September.
