US Federal Reserve Chair Jerome Powell discusses interest rates

The team is penciling in 25-basis-point-cuts in September, October, and December, as well as cuts of the same magnitude in March and June 2026. “If there is any insurance motive for cutting, it would be most natural to cut at consecutive meetings,” Mericle writes of rate cuts in 2025. “We do not expect a cut in July.”

Federal Reserve Chair Jerome Powell said Tuesday that the U.S. central bank has held off on lowering interest rates this year because of President Trump's tariffs.

The latest from the Federal Reserve When the Fed — the common nickname for the Federal Open Market Committee (FOMC) — held its June 2025 meeting, it voted to keep the federal funds rate the same for the time being. After cutting its rate three times at the end of 2024, it has yet to slash the rate in 2025.