US Federal Reserve split on pace of rate cuts

After the US Federal Reserve (Fed) kept borrowing costs unchanged last week, central bankers have been split on the further pace of rate cuts. 

Fed Governor Christopher Waller says tariff-driven inflation risk is small, so the regulator should ease policy at its next meeting on July 29–30. He believes a recent rise in prices has been moderate. At the same time, the official emphasizes some worrying trends in the US labor market, such as high unemployment among recent college graduates.  

Meanwhile, Thomas Barkin, Richmond Fed President, sees no urgency to lower borrowing costs. He notes that inflation holds above the 2% target, tariff debates with key trading partners are unresolved, and the unemployment rate remains low. 

Head of San Francisco Fed Mary Daly said during an interview with CNBC that a rate cut in the fall is more appropriate than a move in July. According to her, faster monetary easing may be necessary only if the US job market falters.