Fed Unlikely to 'Tip Their Hand' on Rate Cuts, Says Ramamurti

Bharat Ramamurti, deputy director of the National Economic Council during the Biden administration, says Donald Trump's comments that the economy is booming don't make a good argument for cutting interest rates.

Federal Reserve officials are determined to hold interest rates steady a little while longer, though an increasingly contentious debate at this week’s policy meeting may bolster expectations for rate cuts in the fall.

Fed Chair Jerome Powell is under intense pressure from President Donald Trump and his allies to reduce borrowing costs, and may face multiple dissents this week from officials who want to provide support to a slowing labor market.

But the US central bank is widely expected to leave its benchmark rate unchanged at the conclusion of its two-day meeting on July 30 as policymakers await more data revealing the impact of tariffs on consumer prices.

“Even as we don’t see any change in the policy rate, I think we see hints that we are at a turning point in the policy path,” said Sarah House, senior economist at Wells Fargo. “But of course, most of the committee doesn’t seem there yet — I think they’re still wary of what happens with inflation regarding these tariffs.”

Fed officials will publish a post-meeting statement Wednesday at 2 p.m. in Washington, and Powell will hold a press conference 30 minutes later. Interest-rate futures show investors are betting on a likely rate reduction at the next meeting, in September, and Fed-watchers will be listening for anything that helps ratify that view.

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