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Investing.com -- While traders recently have been betting on a September timeframe for the Federal Reserve to resume interest rate cuts, there is a growing chorus of Fed members pointing to the July meeting as a possibility for a cut.
Today, Fed Vice Chair Michelle Bowman said she would support a rate cut in July if inflation remained subdued.
“Should inflation pressures remain contained, I would support lowering the policy rate as soon as our next meeting in order to bring it closer to its neutral setting and to sustain a healthy labor market,” Bowman said today in Prague.
The comments from Bowman echoed those made last week by Fed Governor Christopher Waller. Waller, appointed by President Trump, said that, given that price increases related to tariffs are only temporary, he supports cutting in July if inflation data continues to improve. “We could do this as early as July,” Bowman said on CNBC on Friday.
CME Fed Fund futures prices are starting to respond to the Fed’s rhetoric.
The probability of a 25-basis-point cut at the July 30, 2025, FOMC meeting lifted to 23.5% today from 15% on Friday.
A near-term cut from the Fed would be pleasing for President Trump, who has nicknamed Fed Chairman Jerome Powell “Too Late” for failing to cut interest rates as others, like the EU, have lowered their rates multiple times.
In a weekend post, Trump said he’s tried being nice, tried being neutral, and tried being nasty to Powell, who he said could save the U.S. up to $1 trillion per year on interest payments. “Nice and neutral didn’t work!” Trump said. The President said he may change his mind about firing him, but said, regardless, “his Term ends shortly!”