For the first time since 1993, we have two dissenters — Waller and Bowman — both favoring a 0.25% rate cut.
The key shift in language: “The growth of the economy has moderated,” replacing previous references to “expanded,” signals a more cautious tone.
A growing number of Fed members are leaning dovish, pushing for a rate cut sooner rather than later.
Personal Consumption Expenditures (PCE), the Fed’s preferred inflation gauge, rose 0.3% — right in line with expectations.
However, the 3-month annualized rate jumped from 2.0% to 2.6%, a clear sign that tariffs are starting to have an impact.
My take: Powell needs to ease up. These high rates hit everyday people, not the big guys. I get the Fed’s fear of an overheated economy—but from where I’m standing, it doesn’t look like we’re anywhere close. Why not cut now?
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