Federal Reserve officials on Tuesday pushed back on market expectations and pres...
NEW YORK - Federal Reserve officials on Tuesday pushed back on market expectations and presidential pressure for the central bank to deliver a significant U.S. interest rate cut of half a percentage point as soon as its next meeting.
St. Louis Federal Reserve Bank President James Bullard on Tuesday said he does not think the U.S. economic situation is dire enough to warrant cutting rates by a half-percentage point at its next meeting in July, even though he pushed to lower rates last week. “You had a one-two punch,” with Powell warning against policy bending to short-term political pressures and Bullard saying half a percentage point would be too much, said Art Hogan, chief market strategist at National Securities in New York. “Everyone felt like the June meeting was so dovish that the July meeting is a lock and it’s not.”
The Fed’s rate-setting committee next gathers on July 30-31. In the meantime, policymakers will be closely watching data on U.S. economic growth and jobs as well as the G20 summit in Osaka, Japan, at the end of the week, where Trump is due to meet one-on-one with at least eight world leaders, including Chinese President Xi Jinping, for discussions on trade.
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