Federal Reserve Governors Christopher Waller and Michelle Bowman appear to be leading the charge for more interest rate cuts as soon as July. But some Fed colleagues may be looking past the risks they see brewing under headline data regarding softer labor and inflation (Core Personal Consumption Expenditures1) – and focusing on the potential impact of higher tariffs. It may take a few months longer for them to “wait and see” and agree to cut get on the same page.
June 25, 2025