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Institutions: The Fed is expected to remain unchanged this week, with the two doves likely to hold opposing views.
Jin10 data, July 29 - U.S. Chief Economist of Placer, Uluperski, stated that the Fed is expected to keep the interest rate unchanged at 4.25%-4.5% this week, but Waller and Bowman may express opposition. This could intensify speculation that once more officials appointed by Trump join the Federal Reserve Board of Governors starting in the first quarter of 2026, the pace of interest rate decreases will accelerate. Dovish Waller and Bowman may argue that monetary policy is restrictive, as tariff-related inflation is being offset by other factors, and they may advocate for a rate cut based on a neutral interest rate close to 3%. It is expected that Powell will try to guide the FOMC to wait as long as possible for the next rate cut, with a higher likelihood of a cut in October than in September.
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