Monetary policy

While the statement said the panel will “act as appropriate,” the dot plot showed as many expect a cut as foresee no change.

The White House explored the legality of demoting Federal Reserve Chairman Jerome Powell in February, soon after President Donald Trump talked about firing him, according to people familiar with the matter.

While the markets are pricing in two or three interest rate cuts this year, doubters remain.

Traders are now pricing in a more than 80% chance of a rate cut in July.

Business activity in New York contracted in June, as tariffs and a slight softening in the labor market took a toll on conditions.

Former Fed Vice Chairman Stanley Fischer predicted President Trump won’t renominate Jerome Powell as central bank chair, undercutting the Fed’s autonomy.

President Trump sharply criticized Jerome Powell in an interview aired Friday, blaming the Federal Reserve chairman for raising interest rates.

Further increases in weekly jobless claims would bolster the case for lower interest rates.

Next week's Summary of Economic Projections will be watched closely.

With no surprises in the producer price index, the Federal Reserve will have flexibility on rates.