- JD Vance said the Fed should lower interest rates to make homes more affordable and provide support to the administration's efforts to hold down borrowing costs.
- Fed Chair Kevin Warsh has emphasized inflation control and indicated that rate hikes remain an option, while Governor Michael Barr also supports a hike if inflation stays elevated.
- Policy expectations are split ahead of the Sept. 15-16 FOMC meeting, with traders roughly evenly divided on the odds of a rate hike and Governor Christopher Waller favoring steady rates.
Quotes
“We believe that the Fed should be lowering interest rates”
“We're doing a lot of things to try to keep those interest rates down, but it would be nice to have some help from the Federal Reserve”
“Short-term interest rates are the predominant tool to achieve the dual mandate”