Fed officials split on future rate cuts as impact of Trump's tariffs bears down

To cut or not to cut

Several US Federal Reserve policymakers are pushing for an earlier interest rate cut in July amid President Donald Trump’s unpredictable tariff impact on the US economy.

Speaking to a conference in Prague, the Czech Republic, on Monday (23 June), Fed vice chair of supervision Michelle Bowman said "it is time to consider adjusting the policy rate". She added that if inflationary pressures remain controlled, "I would support lowering the policy rate cut as soon as our next meeting", which is scheduled to take place on 30 July. Jerome Powell warns of long term inflation if Trump settles on higher tariffs indefinitely The move would bring the rate "closer to its neutral setting" and support a "healthy labour market", according to Bowman. "It is...