Fed Officials Signal 1 Possible Rate Hike as Trump Presses for Cuts
Updated
Updated · The Washington Post · Jul 17
Fed Officials Signal 1 Possible Rate Hike as Trump Presses for Cuts
3 articles · Updated · The Washington Post · Jul 17
Summary
At least 6 top Fed officials this week indicated they could back higher rates, shifting attention from Trump’s demand for cuts to a possible tightening move.
Beth Hammack said Friday inflation is broad-based, not driven by one source, and reported businesses now want action while consumers describe mounting financial despair.
Dallas Fed President Lorie Logan on Thursday called for modestly higher rates, and Philip Jefferson, Lisa Cook, Christopher Waller and John Williams also left the door open if inflation stays elevated.
Markets still expect the Fed to hold steady in late July, but investors now see roughly a 50% chance of a rate hike in September.
The hawkish turn comes with inflation still well above the Fed’s 2% target, underscoring a widening split between the central bank’s stance and the White House’s push for lower borrowing costs.
Can Fed rate hikes truly fix inflation driven by refinery shortages and Mideast conflict?
With white-collar jobs shrinking for 31 months, is the Fed misreading the true health of the U.S. labor market?
Is the Fed’s 2% inflation target obsolete in a world facing constant supply shocks?
U.S. Inflation Drops on Energy Price Slump, Yet Core Pressures and Fed Hawkishness Persist (June–July 2026)
Overview
In June and July 2026, US inflation eased as energy prices saw their largest monthly drop since April 2020, with gasoline and fuel oil prices falling sharply. Despite this recent relief, energy costs had surged over the past year, causing ripple effects across industries like travel, where airlines such as Delta passed on higher fuel expenses to consumers and kept airfares high. While these lower energy prices helped slow overall inflation, earlier increases still impacted other sectors. At the same time, some regions, like Alabama, experienced a slight rise in unemployment, highlighting mixed signals in the broader economic landscape.