Fed official sees July rate cut 'unlikely,' sticking with Powell's view that coming months will be moment of truth for tariffs' effect on inflation

Federal Reserve Chair Jerome Powell (Credit: Chip Somodevilla/Getty Images)

• Economic data that comes in over the summer is expected to be the first batch to offer clear indications about what tariffs will do to prices, according to Federal Reserve Chair Jerome Powell. For that reason, any interest rate cuts are likely to happen in the fall. 

Atlanta Federal Reserve President Raphael Bostic believes a July interest rate cut would be premature. Even by its upcoming meeting next month, the Fed still wouldn’t have enough data to understand what’s happening to inflation in the wake of the U.S.’s new tariff regime, according to Bostic.