"Federal Reserve Megaphone": Powell maintains flexibility as factors in rate cut decision-making change

Odaily News Nick Timiraos, the Fed’s “mouthpiece,” said Powell dodged a pointed question about July, refusing to rule anything out four weeks before the policy meeting. His overall comments showed little that he was preparing for a rate cut this month. The “excessive” focus on July (at least today) is misplaced and could obscure more subtle changes in his and others’ rhetoric in recent weeks. After the Liberation Day tariffs, there was speculation that price gains might be so large that it would require substantial labor market weakness to cut rates. But more recently, with the tariffs on hold and early (perhaps premature?) inflation readings not showing a meaningful impact, Powell has hinted that rate cuts could be resumed if inflation isn’t as bad as feared.