A top Fed official, considered a candidate to replace Powell, keeps calling for a rate cut this month | Metals Mine

  • A top Fed official, considered a candidate to replace Powell, keeps calling for a rate cut this month

    From cnn.com

    A top official at the Federal Reserve on Thursday reiterated his call for an interest rate cut later this month, despite data showing ongoing resilience in the US economy and other central bankers pushing to keep rates steady. Fed Governor Christopher Waller, at a New York event, said the US central bank should lower borrowing costs at its July 29-30 policy meeting to preserve the labor market’s strength. “With inflation near target and the upside risks to inflation limited, we should not wait until the labor market deteriorates before we cut the policy rate,” he said. “I believe it makes sense to cut the ... (full story)

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CycleGF
Jul 18, 2025 2:36am
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It doesn't matter if the interest rate will be cut. When inflation expectation is higher, the Treasury bonds yield rate will go higher despite the interest rate cut. Because, lower the interest rate means even higher Inflation in the long run.

So, this is the best time to invest in Treasury Bonds ...
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nbfx
Jul 18, 2025 5:47am
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Could his calls for interest rate cuts be as much about furthering his own ambitions as shepherding the economy?
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Trader#E325
Jul 18, 2025 10:42am
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Quoting CycleGF
It doesn't matter if the interest rate will be cut. When inflation expectation is higher, the Treasury bonds yield rate will go higher despite the interest rate cut. Because, lower the interest rate means even higher Inflation in the long run. So, this is the best time to invest in Treasury Bonds ...
And who said "inflation expectation is higher", powell is just playing politics just as he towed Joe Biden's line about "ïnflation is transitory" when it clearly wasnt (gaslighting).
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Trader#3A72
Jul 18, 2025 5:56am
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What did I say? This guy is the next Fed Chair... in the pocket of Donald Trump.
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