Fed Members Resist Further Rate Cuts Amid Economic Concerns

Federal Reserve officials are pushing back against expectations of additional interest rate cuts this year, despite market optimism. Last week's 25-basis-point reduction met forecasts, but hopes for deeper cuts—particularly among crypto investors anticipating 75 basis points by December—are being dashed. Austan Goolsbee, a Fed member, emphasized that strong employment data and persistent inflation concerns make further easing unlikely. "The job market remains stable," he noted, downplaying recession fears.

Tariffs and sticky inflation continue to complicate the Fed's calculus. While Chicago's employment metrics show mild cooling, most policymakers—excluding a handful of dissenters—favor holding rates steady. The central bank's independence remains a focal point as it balances growth risks against price stability mandates.