The Fed Starts Its July Meetings; Will They Cut Interest Rates?

The July FOMC begins today, with even more pressure this time around for Fed Chair Jerome Powell to cut interest rates. But will he actually do it?

"Unfortunately, I don't think there's any way to get Powell to see reason here" said EJ Antoni, chief economist for the Heritage Foundation, "He talks about how he is politically independent and data dependent. He is neither, and his record shows that."

The most glaring example is the Fed lowering interest rates before last years election, but standing firm and doing nothing since Trump's return to office.

"And the problem is not just Powell" Antoni told KTRH, "The problem is the broader Fed board and the broader institution of the Fed which clearly has political interests at heart, and not the genuine interests of the American people."

So what can we expect from the July Fed meeting?

"I think most likely we're going to see the Fed continue to sit on their hands, it'll just be the status quo" noted Antoni, "I don't think that there's anything the president really is going to be able to say or do, I don't think there's anything that the numbers are going to be able to show that will get Powell to change his mind."

In the meantime, there is one decision Powell has made. According to reports, Powell is -not- going to resign before his term ends in May of 2026.