Fed Debate Turns to Pace of Cuts Amid Heavy Trump Pressure

The Federal Reserve is poised to resume cutting interest rates for the first time in nine months as it grapples with a slowing labor market, stubborn inflation and an unprecedented push by President Donald Trump for lower borrowing costs.

A cut this week, however, won’t necessarily set the Fed on a smooth glide path to lower rates.

The Marriner S. Eccles Federal Reserve building in Washington, DC, on Thursday, July 24, 2025.

Photographer: Alex Wroblewski/Bloomberg

A string of disappointing data is fanning worries the labor market could tip into a more serious slowdown, and drag with it consumer spending and economic growth. But inflation is still above the Fed’s 2% target and could yet be driven higher ...