Monetary policy

A close look at Fed officials — barring additional surprise departures from the Fed — suggests the president probably won't get the outsize rate cuts he wants in 2026.

The Federal Reserve governor's term was set to expire in January and President Donald Trump has made it clear that she would not be reappointed. The vacancy will give Trump an opportunity to appoint someone new to the central bank's board.

Although the Federal Reserve is not expected to cut rates at this meeting, the market is closely watching for signs of a September easing and how the divide among officials plays out.

The markets are waiting for the Federal Open Market Committee to make its next move.

"We have to navigate policy not only depending on how the environment evolves, but also with keeping those two objectives in mind," Daly said.

"I would be quite surprised if he did not make a choice that fair-minded observers on both sides recognized as a reasonable person," Summers said on Bloomberg Television.

"We could do this as early as July," Waller said Friday in a televised interview.

The FOMC's decision to "hold rates steady while signaling only two cuts this year was a subtle but powerful shift," said James Pruskowski, CIO at 16Rock Asset Management.

The panel is not expected to change rates, but the dot plot will be watched to see if the Fed's prior projection of two rate cuts this year holds.

The U.S. economy added 139,000 jobs, a healthy clip that counters the president's calls for a rate cut to bolster the labor market.