Bloomberg: The majority of that officials oppose a July interest rate cut | Forexlive

Bloomberg is reporting that the majority of that officials oppose a July interest rate cut. They cite recent commentary. Fed Waller and Feds Bowman were the biggest cheerleaders for a potential July cut.

Fed Chair Jerome Powell testified that a July rate cut is on the table, but warned that the inflationary impact of tariffs is likely to be felt across June, July, and August and that he expects higher inflation as a result. By the time the Fed meets at the end of July, June inflation data will be available, but that may not be enough to convince a majority of policymakers that inflation risks have fully passed.

Even if the June numbers come in softer than expected, lingering concerns about inflation in the coming months—driven by tariffs—could hold the Fed back. Adding to the uncertainty, the threat of further tariff increases looms, especially as trade negotiations with major economies remain unresolved.

Despite a much-publicized economic tour to Saudi Arabia where several deals were announced, no formal trade agreements—including tariff relief—have been finalized. Key trading partners such as Canada, India, Japan, the EU, and China remain in a holding pattern, leaving markets skeptical about any meaningful progress. For now, inflation uncertainty tied to trade policy may be enough to delay action until later in the year.