Federal Reserve officials are sending conflicting signals about potential rate cuts in July 2025. While Fed Chair Powell urged caution due to tariff concerns, Governor Waller said cuts could happen immediately.

“Fed should cut Rates by 3 Points. Very low inflation. One Trillion Dollars a year would be saved!!!,’’ he wrote on his Truth Social platform. With inflation rising slightly and job numbers relatively stable, the CME Group’s closely watched FedWatch Tool forecast a 2.6% chance of an interest rate cut later this month.