03:03 PM EDT, 06/24/2025 (MT Newswires) -- Fed Chairman Jerome Powell (voter) said that the FOMC has time to see how the tariff effects on inflation evolve before deciding whether to lower interest rates further.

Powell said that the FOMC would be willing to lower rates sooner rather than later if inflation proves to be contained, but added that the impact of tariffs is likely to be seen in the June and July inflation data.

New York Fed President John Williams (voter) said that it is appropriate for the FOMC to maintain a modestly restrictive stance to allow time to navigate the uncertainty presented by tariffs and reduced immigration. Williams expects slower GDP growth, faster inflation growth and rising unemployment this year.

Recent comments of note:

(June 23) Fed Vice Chair for Supervision Michelle Bowman (voter) said that a July rate cut could be considered given an expected slowing in labor market data and the possibility that the inflation impact from tariffs could be a one-time event and of a smaller size than previously expected.

(June 23) Chicago Fed President Austan Goolsbee said tariff impacts to this point have been more modest than expected. He added that uncertainty remains, but if inflation does not get lifted by the tariffs, then further rate reductions can be considered.

(June 20) San Francisco Fed President Mary Daly (nonvoter) said that July is likely to be too soon for the next rate cut but that a reduction in the fall may be appropriate. In a later speech on June 22, Daly said that monetary policy is well-positioned with risks to both sides of its dual mandate roughly equal.

(June 20) Richmond Fed President Tom Barkin (nonvoter) told Reuters in an exclusive interview that the FOMC should not hurry to cut interest rates due to the possibility that tariffs could lift inflation and the current resilience of the US job market.

(June 20) Fed Governor Christopher Waller (voter) said in a CNBC interview that the FOMC could lower interest rates as early as the July meeting if conditions allow for it, noting that the inflation impact from tariffs could be temporary.