Fed Dissenters Back July Rate Cut Amid Trump Attacks
Summary
- Two Fed Governors dissented, favoring a July rate cut.
- They cited an unsteady labor market as a reason for preemptive action.
- They believe tariff-related inflation is temporary.
- This is the first double dissent from the Board of Governors since 1993.
Overall Sentiment: ⚪ Neutral
AI Explanation
Two Federal Reserve Board of Governors members, Christopher J. Waller and Michelle W. Bowman, dissented from the decision to hold interest rates steady for the fifth consecutive meeting. They advocated for a July rate cut, arguing that an unstable labor market requires preemptive support. They also believe that inflation increases due to President Trump's tariffs will be temporary, allowing the Fed to disregard the expected rise in consumer prices. This marks the first double dissent from the Board of Governors since 1993, occurring amidst intensified criticism of Fed Chair Jerome Powell by President Trump.
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