Interest Rates

Other FOMC members remain concerned about inflation and do not currently support an another interest rate cut in October.

Although inflation remains “somewhat elevated,” FOMC officials agreed to cut interest rates because “downside risks to employment have risen.”

The Federal Reserve is widely expected to reduce interest rates at this week’s meeting, but that won’t necessarily set the U.S. on a smooth glide path to significantly lower rates.

He seems to believe if he “has a majority” of Fed governors, he can pressure them to make federal borrowing much cheaper. That approach would be highly likely to backfire in the long run.

But he continued to argue that policymakers must guard against the prospect that tariffs could lead to persistent inflation.

But several saw the risks roughly balanced between prices and jobs, and a couple were more concerned about the labor market than inflation.