The Federal Reserve megaphone: the Fed opens the door to rate cuts in the second half of the year, officials are sharply divided.

date
19/06/2025
The Federal Reserve's "microphone" Nick Timiraos wrote that the Fed's decision to keep interest rates unchanged this time leaves the possibility of a rate cut in the second half of the year. In order to resume the rate cuts that began last year, Fed officials may need to see softening in the labor market or stronger evidence that the price increases caused by tariffs will be relatively moderate. The forecasts released show that officials are open to seeing evidence before the fall. The new rate forecast highlights the differences among the 19 officials. Ten of them expect at least two rate cuts this year, a slightly smaller proportion than in March, and two expect one rate cut. At the same time, seven believe that there will be no changes this year, up from four in March.
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